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“PMA policy which is linked to telecom equipment and other electronic products having security implications has been approved,” a government source said after a Cabinet meeting.
The Indian government announced in July that it would review a policy that gave preference to locally made electronics goods in government and private sector procurement.
The previous version of the policy approved by the Cabinet in February called for giving preference to domestically manufactured electronic products that have security implications for the country.
The policy saw major opposition, mostly from United States trade groups representing global companies such as Apple Inc.
However, the US government itself has limited the import of technology products from Chinese companies on security grounds including the threat of cyber espionage.
India’s electronics demand is expected to reach $400 billion by 2020.
The Prime Minister’s Office said in July that “the revised proposal on PMA in the private sector for security-related products will not have domestic manufacturing requirements, percentage based or otherwise”.
India has excelled in information technology services but imports the majority of its electronics requirements.