Cabinet Approves Compulsory Local
Content for Electronic Goods
The Cabinet has approved the proposal to provide
preference to domestically manufactured electronic products, in procurement of
those electronic products which have security implications for the country and
in Government procurement for its own use, consistent with our World Trade
Organization (WTO) commitments.
The graded value-addition norm for electronic
products to qualify as being domestically manufactured is described in Table
below.
Table: Domestically Manufactured Electronic
Products
|
Year |
Percentage domestic value-addition in terms of
Bill of Material (BOM) |
|
Year 1 |
25% |
|
Year 2 |
30% |
|
Year 3 |
35% |
|
Year 4 |
40% |
|
Year 5 |
45% |
[Source: Ministry of
Communications & Information Technology, PIB Press Release dated 2nd
February 2012]