Domestic telecom equipment manufacturers in India have raised concerns that telecom and networking products from China, including security-sensitive items, are being imported into the country without proper scrutiny. They are calling on the Indian government to intervene and put a stop to this practice.

Local vendors, represented by the Voice of Indian Communication Technology Enterprises (VoICE), have already brought this issue to the attention of several ministries. According to VoICE's study, they underscored that 40 percent of India's imports of telecom and networking equipment originate from China.

VoICE, which represents companies like Tejas Networks, Sterlite Technologies Limited, HFCL, and Tata Consultancy Services (TCS), alleged that crore-worth of equipment is being imported from China despite the Indian government's clear “trusted sources” sourcing guidelines.

The body also represents Inventum, Infinity Labs, Lekha Wireless, Nivetti Systems, Amantya, Astrome, Priyaraja Electronics and C-DOT.

Rakesh Bhatnagar, the Director General of VoICE, told Moneycontrol that several multinational networking and telecom equipment vendors exploit loopholes in the trusted sources regime to import vital equipment like wireless access points, routers, switches, and radio equipment from China.

He said companies mention incorrect descriptions to avoid basic customs duty (BCDs) on these networking products. “...there are instances where China-made products are being imported with “make in India” label and supplied across government PSUs and private networks. This is done by ‘On Paper Manipulation’. We have shared evidence with the Government including Finance Ministry, DPIIIT, DOT, concerned Ministries and PSUs but hardly any action is taken against defaulters,” he said.

The domestic vendors, represented by the association, have also urged for a thorough review of the Government e-Marketplace (GeM) portal, where numerous Chinese products are sourced for various orders by public sector undertakings (PSUs).

Bhatnagar said that some Chinese equipment is brought into India through indirect channels, such as other countries. The companies are then given Indian names, and they register on the GeM portal, allowing them to participate in government tenders.

Out of the total traceable imports of Rs 644 crore of access points from January 1, 2020, to April 30, 2023, from China, he said, adding that the ongoing practice suggests that land border policy is not being adhered to strictly.

Moneycontrol has reviewed a copy of the VoICE study on Chinese imports.

“Unless strongest action is taken against erring officials as suggested in DPIIT’s Public Procurement (Make in India) Policy, violations will continue,” he said.

Image source: Moneycontrol