India is indirectly forcing companies to make in India and reduce its reliance on Chinese imports by not allowing approvals for the import of Wi-Fi modules being manufactured in China for months, resulting in several tech companies in India delaying their product launches.
This was revealed by two industry experts in a conversation with Reuters. Authorities are specifically delaying imports from china of electronics goods such as Bluetooth headsets, speakers, smartphones, smartwatches etc — all that are known to contain Wi-Fi modules.
The report has highlighted that Indian Communications Ministry’s Wireless Planning and Coordination (WPC) wing has not granted approval for some products dating all the way back to November last year.
The list includes over 80 applications by US, Chinese and Korean companies. It has even withheld applications from several Indian companies too.
The government earlier allowed companies to self-declare wireless equipment. However, newer rules from March 2019 made it compulsory for companies to seek government approval.
The ministry hasn’t really responded to this situation with any comment. Sources have revealed that the government had still to respond to representations made by industry lobby groups and individual companies.
One of the sources stated, “The government’s idea is to push companies to manufacture these products in India. But tech companies are caught in a difficult situation – making in India would mean big-ticket investments and a long wait for returns, on the other hand, the government-imposed hurdle on imports means a potential loss of revenues.”
The report also states that the delay caused in receiving these approvals also highlights the nation’s strategy in slashing China’s influence in its tech economy after border tensions that were experienced last year.
Just this week, Huawei was removed from the list of participants for 5G telecommunications trials that are going to be conducted in India while permitting South Korean and European players.
