Policy of Make in India for Network/IT equipments, how much it is impacting the OEMs/System Integrators based in India

The Make in India (MII) initiative, launched in 2014, aims to transform India into a global manufacturing hub by promoting local production and reducing imports. In the network/IT equipment sector, governed by the Department of Telecommunications (DoT), the policy mandates a minimum 50% local content (LC) for 36 telecom products in public procurement, including routers, ethernet switches, GPON equipment, media gateways, satellite phones, and telecom batteries, with some requiring up to 65% LC. This applies to government entities and USOF-funded projects, prioritizing Class-I suppliers (>=50% LC) over Class-II (>=20% LC), excluding imported items, royalties abroad, and refurbished goods from LC calculations. The Production Linked Incentive (PLI) scheme further incentivizes domestic manufacturing and exports in telecom networking.
For Indian OEMs and system integrators, MII has had a mixed impact. Positively, it fosters self-reliance, boosts investments, and enhances market access through procurement preferences, leading to increased production, job creation, and export growth in electronics/telecom—evident in reduced import dependence and supply chain development via PLI and the India Semiconductor Mission. However, challenges persist: high LC requirements inflate costs due to India's limited component ecosystem, prompting DoT's 2025 plans to relax norms for better compliance. Overly ambitious targets have resulted in unmet goals, with manufacturing's GDP share at ~17% versus 25%, exacerbated by regulatory hurdles, foreign capital reliance, and global disruptions. Overall, while empowering local players with opportunities, the policy's rigidities have strained smaller integrators, yielding moderate success in building a competitive IT/network ecosystem
Refer- https://kysinfotech.in/forums/topic/policy-of-make-in-india-for-network-it-equipments/