NEW DELHI, June 16: Preferential market access (PMA) guidelines have been issued under which central ministries and departments will have to meet at least 30 per cent of their electronic items requirements through domestically manufactured products.
Defence is, however, exempt from the guidelines.
“The minimum percentage of domestic procurement for any electronic product notified is 30 per cent,” Department of Electronics and IT (DeitY) said.
Defining domestically manufactured electronic products (DMEP), DeitY said all those electronic products which are manufactured by entities registered and established in India, including special economic zones, original equipment manufacturers and their contract manufacturers, but not traders.
“The PMA guidelines for government procurement has been issued,” Department of Electronics and IT (DeitY) J Satyanarayana told.
As per the guidelines, there are 24 categories of telecom/ network gear that have been classified security-sensitive.
The Cabinet in February last year had approved PMA policy. The policy is envisaged to push manufacturing capabilities in the country to reduce dependency on imports, especially in the strategic fields like defence and telecom.
PMA policy had seen opposition from various foreign trade associations, including industry body Information Technology Industry (ITI) Council that represents major foreign technology companies like Alcatel Lucent, Ericsson, Motorola and Nokia.
However, Telecom Secretary MF Farooqui had earlier clarified that benefits of PMA policy would also apply to foreign firms manufacturing products in the country.
“…Domestic manufacturing means what is manufactured here, it can be manufactured by a multinational company,” Farooqui had said.
Government procures electronic items to meet security needs of the country and domestically manufactured electronic items are promoted to ensure that information processed through these equipments are not compromised.
A few years ago, it restricted a few foreign companies from supplying such items to Indian security agencies. (PTI)
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