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 LED products to the list of manufactured electronic goods where a preference is given to domestic products in procurement by ministries due to security considerations. The LED products considered by the notification are those that will be used for illumination, optical displays, backlighting, signalling & indication and transportation.

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 LED products is 50%, while the percentage value addition required in the Bills of Material (BOM) for the products to be classified as domestically manufactured is 50% 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 LED emitters, Driving Electronics, circuit boards, thermal management solutions, secondary optics, system fixture and fitting, final assembly and testing. 

AFFECTED SECTORS