. /.  WORLD TRADE  
ORGANIZATION   
G/TRIMS/W/97 
10 May 2012 
 (12-2509) 
Committee on Trade-Related Investment Measures Original:   English 
  
 
INDIA – CERTAIN PREFERENCES TO DOMESTICALLY  
MANUFACTURED ELECTRONIC GOODS 
 
Replies to Questions from the United States
1 
 
 
 The following communication, dated 4 May 2012, is being circulated at the request of the 
Delegation of India.  
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Question 1 
 
 Please explain the circumstances under which private firms (e.g., telecom service 
providers in India) may be required to pu rchase domestically manufactured electronic 
products.  For example, would this requirement  apply only in the case of "those electronic 
products which have security implications for th e country"?  How does this requirement apply, 
as provided for in paragraph 2.2.4 of the polic y, in respect of Managed Service Providers?  
Please provide a definition of "Managed Service Providers".    
Reply 
 
 The Notification No. 8(78)/2010-IPHW dated 10 February 2012 lays down an enabling 
framework.  The policy by itself does not mandate any specific electronic product or procurement agency which needs to provid e preference to domestically manufactured electronic goods.  
 
 The decision to grant preference to domestically manufactured electronic products on security 
grounds will be taken by concerned Ministry/Dep artment on a case by case basis based on the merits 
of the case.    The policy applies w.r.t. (i) Government procur ement not with a view to commercial resale or 
with a view to use in the production of goods for commercial sale and (ii) in procurement of those 
electronic products which have security implications for the country.   
  The policy is also applicable to procurem ent of electronic hardware as a service from 
Managed Service Providers (MSPs).  Many a ti mes, Information Technology (IT) / Communication 
infrastructure is not set up by an organization but is bought as a managed service from a Managed 
Service Provider (MSP) who sets up the infrastructure.  Several Government agencies have been 
procuring services such as data centre and dedicated  networks through service providers wherein such 
infrastructure has been set up by the service providers.  
                                                      
1 G/TRIMS/W/94. G/TRIMS/W/97 
Page 2  
 
  Question 2 
  What is the purpose of requiring the purch ase of domestically manufactured electronic 
products, either for government procurement or for procurement by non-governmental 
entities? 
 
Reply 
  The Government has laid down the policy in  case of Government procurement not with a 
view to commercial resale or with a view to use in  the production of goods for commercial sale and in 
procurement of those electronic products which have security implications for the country.   
 
Question 3 
 
 Para. 2.2.1 of the policy appears to suggest  that each Ministry will determine whether 
particular electronic products "hav[e] security implications" that would render procurements 
of those products subject to the domestic purc hase mandates.  Is this correct?  If so, please 
explain how differences in view between ministri es on this question will be resolved.  If not, 
please explain which entity in the Government of  India will make this determination and what 
criteria or factors will be examined to arrive at this determination. 
 Reply 
 
 As specified in para 2.2.1 of the policy, ministries/departments concerned or designated 
authority notified for this purpose by the minist ry/department concerned will notify the electronic 
product or products having security implications.    The Transaction of Business Rules of the Government of India provide for 
inter-ministerial/departmental consultation, wh ere subject of the case concerns one or more 
Ministries/Departments.   
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