ANNOUNCEMENT 22 Jan 2013In January 2013, the government of India announced a change in the local input requirements for the participation in certain public purchases.
NUMBER OF INTERVENTIONS
On 22 January 2013, the Ministry of Communications and Information Technology added laptop computers to the list of manufactured electronic goods where a preference is given to domestic products in procurement due to security considerations by ministries.
The Notification specifies the minimum percentage of requireddomestic procurement, the percentage of the total value added thatqualifies the product as domestically manfuactured and the inputs andprocesses that will be considered for assessing whether the product isclassified as domestically manufactured.
The percentage of procurement for domestically manfuactured laptops is 50%, while the percentage value addition required in the Bills of Material (BOM) for the laptops to be classified as domestically manufactured is 25% for year 1. The domestic value addition for Year 2 will increase by 5% from the current requirements.
The inputs in the BOM considered for the above would include the hard drive, display panels, dvd drive, cabinet, motherboard, power modules, semiconductors, power adapter, keypad, touchpad, battery, final assembly, and development. The individual inputs further have several criterias for the value addition and domestic manufacturing required.