INDIA
Since December 2013
Since November 2015
Since November 2015
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Policy for Providing Preference to Domestically Manufactured Electronic Products in Government Procurement (PMA), 2013
Guidelines for Providing Preference to Domestically Manufactured Electronic Products in Government Procurement, 2015
Guidelines for Providing Preference to Domestically Manufactured Electronic Products in Government Procurement, 2015
The Policy for Providing Preference to Domestically Manufactured Electronic Products in Government Procurement (PMA) mandates that domestically manufactured equipment be prioritised in both government procurement and select private sector procurement activities. The policy stipulates that each ministry or department must meet a minimum percentage of their demand for electronic products with locally manufactured goods that comply with the prescribed minimum value addition requirements for each item. This policy aligns with India’s broader objectives to enhance domestic manufacturing capacity and safeguard the security of its telecommunications infrastructure.
According to the 2015 Guidelines on the implementation of this policy, the minimum threshold for domestic procurement of any electronic product is set at 30%. Additionally, the rate of total procurement value accorded preference for domestically manufactured electronic products should be determined in a manner that encourages domestic manufacturing while maximising competition.
In addition, the Guidelines list the electronic products subject to this policy, including but not limited to notebooks, tablets, desktop PCs, servers, printers, keyboards, monitors, USB devices, ATMs, photocopiers, scanners, faxes, smartcards, mobile handsets, handheld terminals, PC projectors, and POS-based services. Telecom products under the Guidelines include SIM cards, encryption platforms, leased line network equipment, WiFi access systems, among others.
According to the 2015 Guidelines on the implementation of this policy, the minimum threshold for domestic procurement of any electronic product is set at 30%. Additionally, the rate of total procurement value accorded preference for domestically manufactured electronic products should be determined in a manner that encourages domestic manufacturing while maximising competition.
In addition, the Guidelines list the electronic products subject to this policy, including but not limited to notebooks, tablets, desktop PCs, servers, printers, keyboards, monitors, USB devices, ATMs, photocopiers, scanners, faxes, smartcards, mobile handsets, handheld terminals, PC projectors, and POS-based services. Telecom products under the Guidelines include SIM cards, encryption platforms, leased line network equipment, WiFi access systems, among others.
Coverage Certain electronic products
Sources
- https://web.archive.org/web/20220119085433/https://www.meity.gov.in/writereaddata/files/Notification_Preference_DMEPs_Govt_%20Proc_23_12_2013.pdf
- https://web.archive.org/web/20230810205242/https://www.meity.gov.in/writereaddata/files/R_G_U_16_11_2015.pdf
- https://web.archive.org/web/20231129222542/http://www.ustr.gov/sites/default/files/2014%20TBT%20Report.pdf
- https://web.archive.org/web/20211124083713/https://dot.gov.in/sites/default/files/Doc%201.pdf?download=1
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INDIA
Reported in 2013, last reported in 2024
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Procurement Quota of M/s ITI Ltd. in procurements made by BSNL, MTNL and BBNL
M/s ITI Limited (a public sector enterprise under the Ministry of Telecommunications) has a reservation quota for procurements made by three state-owned telecommunications companies (BSNL, BBNL and MTNL). The reservation quota for M/s ITI Ltd. in procurements began on September 21, 2013. It was initially extended in November 2018 for three years, maintaining a 30% reservation threshold, with value addition requirements of 12% in 2018-19, 16% in 2019-20, and 20% in 2020-21. The policy has been subject to periodic reviews, with the latest extension in 2024 continuing beyond the initial three-year period.
Coverage Telecommunications sector
INDIA
Since February 2015
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
E-mail Policy of the Government of India
Under the E-mail Policy of the Government of India (GoI), the use of private email platforms, such as Gmail or Outlook, for official communication is strictly prohibited across all government organisations. Employees are mandated to transition to the email services provided by the National Informatics Centre (NIC) and must exclusively utilise these official email services for all governmental correspondence. Furthermore, government employees are prohibited from sharing their official email account credentials with private email service providers.
Each employee of the Central Government, as well as those in state or Union Territory (UT) governments, is assigned two email accounts: one linked to their official designation for exclusive use in professional communications and the other, based on their name, which may be used for both professional and personal purposes.
Each employee of the Central Government, as well as those in state or Union Territory (UT) governments, is assigned two email accounts: one linked to their official designation for exclusive use in professional communications and the other, based on their name, which may be used for both professional and personal purposes.
Coverage E-mail Services
Sources
- https://web.archive.org/web/20231205225527/http://meity.gov.in/content/email-policy
- https://web.archive.org/web/20211211094727/http://timesofindia.indiatimes.com/india/Govt-bans-use-of-private-email-for-official-communication/articleshow/46438095.cms
- https://www.ifsecglobal.com/india-region/indian-government-bans-use-private-email-official-communication/
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INDIA
Since May 2015, extended in May 2020, until May 2025
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In May 2015, the Indian Ministry of Finance issued the Customs Notification imposing this definitive anti-dumping duty on imports of electronic calculators (HS 847010, 390720) from China. This measure was reviewed and extended in May 2020. The rate of duty is USD 0.28 or USD 1.22 per unit, depending on the company. The duty is in force for a period of five years.
Coverage Product: Electronic calculators (HS 847010, 390720)
Country: China
Country: China
Sources
- https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009-DP.aspx?language=E&CatalogueIdList=285529,284510,284508,284509,284511,284513,284446,284078,284070,284069&CurrentCatalogueIdIndex=9&FullTextHash=&H...
- https://web.archive.org/web/20241127194637/https://www.globaltradealert.org/intervention/18302/anti-dumping/india-extension-of-definitive-antidumping-duty-on-imports-of-certain-electronic-calculators-...
- https://web.archive.org/web/20220913184953/https://taxguru.in/custom-duty/govt-imposes-anti-dumping-duty-electronic-calculators.html
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INDIA
Reported in 2018, last reported in 2023
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Lack of transparency in tenders
It is reported that India lacks a comprehensive public procurement policy, leading to an inconsistent and non-transparent public procurement process.
Coverage Horizontal
INDIA
Since June 2020, until June 2025
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In June 2020, the Indian Ministry of Finance imposed a definitive duty on imports of electronic calculators (HS 847010, 390720) from Malaysia. The duty amounts to 0.92 USD per item. The duty is in force for a period of five years.
Coverage Product: Electronic Calculators (HS 847010, 390720)
Country: Malaysia
Country: Malaysia
INDIA
N/A
Pillar Public procurement of ICT goods and online services |
Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
India is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the agreement since 2010.
Coverage Horizontal
INDIA
Since April 2015, extended in April 2020, until April 2025
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In April 2015, the Indian Ministry of Finance issued the Customs Notification imposing this definitive anti-dumping duty on imports of electrical insulators (HS 8546) originating in China. Electrical insulators are used to hold conductors in position, separating them from one another and from surrounding structures. This measure was reviewed and extended in April 2020. The rate of duty is USD 638 or USD 1,383 per tonne, depending on the company. The duty is in force for a period of five years.
Coverage Product: Electrical insulators (HS 8546)
Country: China
Country: China
Sources
- https://web.archive.org/web/20220813092838/https://www.globaltradealert.org/intervention/18292/anti-dumping/india-extension-definitive-antidumping-duty-on-imports-of-electrical-insulators-from-china
- https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009-DP.aspx?language=E&CatalogueIdList=285529,284510,284508,284509,284511,284513,284446,284078,284070,284069&CurrentCatalogueIdIndex=9&FullTextHash=&H...
INDIA
Since April 2013, last amended in October 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Consolidated Foreign Direct Investment (FDI) Policy Circular of 2020
As stipulated in Section 5.2.7.2 of the 2020 Consolidated Foreign Direct Investment (FDI) Policy Circular, foreign direct investment in broadcasting content services, specifically related to the uploading and streaming of news and current affairs via digital media, is limited to 26% and is subject to government approval.
Coverage Digital media
INDIA
Since June 2017, as amended in May 2020
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
General Financial Rules, 2017
Under Article 161 of the General Financial Rules, as amended by the Department of Expenditure, Ministry of Finance OM F.12/17/2019-PPD in May 2020, if a Ministry or Department determines that domestically available goods may not meet the required quality or specifications, and there is a need to seek competitive bids from abroad, they may distribute copies of the tender notice to Indian embassies abroad and foreign embassies in India. The selection of relevant embassies is based on the likelihood of sourcing the required goods from the respective countries. However, a Global Tender Enquiry (GTE) is prohibited for tenders valued at or below 200 million rupees (approximately USD 24 million). In cases where a GTE is deemed necessary for tenders below this threshold due to special circumstances, a detailed justification must be provided, and prior approval for an exemption must be sought from the Competent Authority designated by the Department of Expenditure.
Coverage Horizontal
INDIA
Since April 2013, last amended in October 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Consolidated Foreign Direct Investment (FDI) Policy Circular of 2020
Since the implementation of the Consolidated FDI Policy Circular of 2016, last amended by the Consolidated FD) Policy Circular of 2020, India permits fully owned FDI in business-to-business (“marketplace-based”) electronic commerce, i.e. "providing an information technology platform by an e-commerce entity on a digital & electronic network to act as a facilitator between buyer and seller." However, India prohibits foreign investment in business-to-consumer (or “inventory-based”) electronic commerce, also defined as "e-commerce activity where the inventory of goods and services is owned by an e-commerce entity and is sold to the consumers directly".
When a marketplace e-commerce entity exercises ownership or control over the inventory, the business is categorised into the inventory-based model. Additionally, India implemented regulations that expressly prohibit subsidiaries of foreign-owned marketplace-based electronic commerce sites from selling products on their parent companies’ sites. The rules also prohibit exclusivity arrangements by which electronic commerce retailers can offer a product on an exclusive basis.
The only exceptions for FDI in inventory-based electronic commerce are for food-product retailing and single-brand retailers that meet certain conditions, including the operation of physical stores in India. According to Section 5.2.15.3 of the Consolidated FDI Policy Circular of 2020, retail trading through e-commerce can also be undertaken before opening physical stores, subject to the entity opening physical stores within two years from the start of online retail. Overall, it is reported that these narrow exceptions limit the ability of many electronic commerce service suppliers to serve the Indian market.
When a marketplace e-commerce entity exercises ownership or control over the inventory, the business is categorised into the inventory-based model. Additionally, India implemented regulations that expressly prohibit subsidiaries of foreign-owned marketplace-based electronic commerce sites from selling products on their parent companies’ sites. The rules also prohibit exclusivity arrangements by which electronic commerce retailers can offer a product on an exclusive basis.
The only exceptions for FDI in inventory-based electronic commerce are for food-product retailing and single-brand retailers that meet certain conditions, including the operation of physical stores in India. According to Section 5.2.15.3 of the Consolidated FDI Policy Circular of 2020, retail trading through e-commerce can also be undertaken before opening physical stores, subject to the entity opening physical stores within two years from the start of online retail. Overall, it is reported that these narrow exceptions limit the ability of many electronic commerce service suppliers to serve the Indian market.
Coverage E-commerce sector
Sources
- https://web.archive.org/web/20220927051701/https://dpiit.gov.in/sites/default/files/FDI_Circular_2016(1).pdf
- https://web.archive.org/web/20230131002741/https://dpiit.gov.in/sites/default/files/FDI-PolicyCircular-2020-29October2020_0.pdf
- https://web.archive.org/web/20230802214420/https://ustr.gov/sites/default/files/2022%20National%20Trade%20Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
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INDIA
Since June 2017, as amended in September 2020
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Internal Trade (DPIIT) Order No. P-45021/2/2017-B.E.
According to Art. 3B of the Internal Trade (DPIIT) Order No. P-45021/2/2017-B.E, if the procurement authority has determined that sufficient local capacity and competition exist, only 'Class-I Local Suppliers' are eligible to participate, ensuring that all selected suppliers fall within this category. As stipulated in the Order, a 'Class-I Local Supplier' is defined as a supplier whose local content comprises at least 50%.
Coverage Horizontal
INDIA
Since March 2015
Since April 2015
Since April 2015
Pillar Public procurement of ICT goods and online services |
Indicator Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
Policy on Adoption of Open Source Software for the Government of India
Framework for adoption of Open Source Software in eGovernance applications
Framework for adoption of Open Source Software in eGovernance applications
The Indian government adopted a formal preference for open-source software for e-government procurement opportunities related to its digital agenda. The Policy on Adoption of Open Source Software for the Government of India is reported to be one of the most far-reaching and restrictive preference schemes that has been implemented to date. The Policy calls for a change from using Closed Cloud Software (CSS), which is licensed under the exclusive right of the copyright holder. The Indian government wants all governmental organisations to move towards the use of open-source software, which it argues would ensure strategic control of eGovernance applications and reduce the cost of ownership of projects. The Framework for adoption of Open Source Software in eGovernance applications provides a set of procedures and recommendations for promoting, adopting and managing OSS in e-Governance systems. The framework provides guidance on the selection of software and the induction of the OSS software.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231019050008/https://www.meity.gov.in/sites/upload_files/dit/files/policy_on_adoption_of_oss.pdf
- https://web.archive.org/web/20220119061933/http://cloudscorecard.bsa.org/2016/pdf/country_reports/2016_Country_Report_India.pdf
- https://web.archive.org/web/20241111170643/https://www.meity.gov.in/sites/upload_files/dit/files/Final_Framework%20for%20Adoption%20of%20OSS.pdf
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INDIA
Since November 2010
Pillar Public procurement of ICT goods and online services |
Indicator Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
Policy on Open Standards for e-Governance
There is a requirement to make patents available on a royalty-free basis for those open standards identified as "Identified Standards" under the Policy on Open Standards for e-Governance. Per Clause 4.1.2: "The Patent claims necessary to implement the Identified Standard shall be made available on a Royalty-Free basis for the lifetime of the Standard". Open standards refer to the freedom to encode and decode data and network protocols.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231206033612/https://egovstandards.gov.in/sites/default/files/2021-07/Policy%20on%20Open%20Standards%20for%20e-Governance.pdf
- https://web.archive.org/web/20230401100557/https://www.bsa.org/reports/2018-bsa-global-cloud-computing-scorecard
- https://web.archive.org/web/20211115020524/https://www.indiacode.nic.in/bitstream/123456789/1999/3/A2000-21.pdf
- https://web.archive.org/web/20220122205021/http://egovstandards.gov.in/sites/default/files/Policy%20on%20Open%20Standards%20for%20e-Governance.pdf
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INDIA
Since June 2017, as amended in September 2020
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Internal Trade (DPIIT) Order No. P-45021/2/2017-B.E.
Pursuant to Art. 13A of the Internal Trade (DPIIT) Order No. P-45021/2/2017-B.E, for goods, services, or works subject to substantial public procurement, where the Nodal Ministry has not determined the existence of sufficient local capacity and competition, the Ministry must establish an upper threshold value beyond which foreign companies are required to form joint ventures with Indian companies to participate in tenders. Procuring entities must incorporate this requirement into their tenders and include provisions exempting such joint ventures from the stipulated minimum local content requirements, with a framework for the gradual increase of these requirements over time.
Coverage Horizontal
