India Drops 20% Local Sourcing Rule, Keeps Security Guardrails For Satcom

by · Inc42

SUMMARY

  • The newly notified telecom rules have omitted a proposal that required satcom operators to source at least 20% of its ground-segment equipment from India within five years of launching services
  • Bexley Advisors’ Utkarsh Sinha believes that dropping the localisation mandate removes a major commercial barrier and signals India's intent to attract global players and investment
  • With the new regime, the Centre is betting that India's large market, expanding manufacturing ecosystem and trusted supplier frameworks will encourage companies to manufacture locally over time