ANNOUNCEMENT 01 Oct 2014

In October 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: 01 Oct 2014 | Removal date: open ended
Still in force

Public procurement localisation

On 1 October 2014, the Ministry of Communications and Information Technology added biometric fingerprint sensors to the list of manufactured electronic goods where a preference is given to domestic products in procurement by government minsitries due to security considerations.

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 the sensors is 50%, while the percentage value addition required in the Bills of Material (BOM) for the sensors 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 circuit boards, optics, CMOS sensor, plastic housing, USB cables, assembly & testing and design & development.

AFFECTED SECTORS