IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Aug 2018 | Removal date: open ended
Still in force

Public procurement localisation

On 1 August 2018, the Ministry of Electronics and Information Technology has through Notification F.No.33(5)/2017-IPHW stated the policy for giving preference to locally manufactured mobile phones in government purchases.

India had in May 2017 approved the Public Procurement (Preference to Make in India) Order which required that preferential procurement should be done from local suppliers for all government procurements. The Order had specified a minimum local content of 50% for goods to qualify as a locally produced but had provided scope for ministries to define local content requirements for specific goods as well.

The current Notification specifies that 50% of the value of cellular mobile phones procured has to be domestically manufactured and that there should be at least 50% value addition to the Bill of Material (BOM) for the good to qualify as domestically manufactured. The Notification lists the parts that count towards the BOM and also lists the value addition criteria for each. The value addition criteria for mobile phones mainly requires that the parts be domestically assembled without any restriction on the usage of indigenous or imported raw materials.

The Notification is valid immediately and will be reviewed after 31 March 2019. 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

472 Television & radio transmitters; cameras; telephone sets
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851712 Telephones for cellular networks or for other wireless networks
474 Parts for the goods of classes 4721 to 4733 & 4822
8517 Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a lo
851770 Parts

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