ANNOUNCEMENT 22 May 2014

In May 2014, the government of India announced a change in the local input requirements for the participation in certain public purchases.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 22 May 2014 | Removal date: open ended
Still in force

Public procurement localisation

 On 22 May 2014, the Ministry of Communications and Information Technology added desktop PCs and dot matrix printers 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 required domestic procurement, the percentage of the total value added that qualifies the product as domestically manfuactured and the inputs and processes that will be considered for assessing whether the product is classified as domestically manufactured.

The percentage of procurement for domestically manfuactured desktop PCs is 50%, while the percentage value addition required in the Bills of Material (BOM) for the PCs to be classified as domestically manufactured is 30% 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 processor, memory, hard drive, LCD monitor, DVD drive, power supply cords, keyboard, mice, motherboard, bare PCB, assembly, testing, design & develpment. 
 
The percentage of procurement for domestically manfuactured dot matrix printers is 50%, while the percentage value addition required in the Bills of Material (BOM) for the printers to be classified as domestically manufactured is 40% 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 main and bare PCB, power supply cords, carriage motors, paper feed motors, control panel, sensors, printer cabinet, mechanism assembly, print heads, assembly, testing, design & development.