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Telecom Regulatory Authority of India (TRAI) | Department of Telecommunications (DoT) | Ministry of Communications
The Telecom Regulatory Authority of India (TRAI) has released its recommendations on the ‘Regulatory Framework for the Sale of Foreign Telecom Service Providers’ SIM/eSIM Cards for Use in M2M/IoT Devices Meant for Export’. This framework is designed to position India as a global hub for M2M (Machine-to-Machine) and IoT (Internet of Things) device manufacturing by clarifying the rules for pre-installing foreign connectivity in devices manufactured for international markets.
Key regulatory highlights and recommendations include:
Simplified Export Logistics: Manufacturers in India are now permitted to pre-install Foreign TSP (Telecom Service Provider) SIMs or eSIMs in M2M/IoT devices, provided these devices are strictly intended for export purposes only.
No Local Registration Required: Foreign TSPs whose SIMs are used in these exported devices do not need to obtain an Indian telecom license or register as an M2M Service Provider (M2MSP) in India, reducing administrative friction for global OEMs.
Traceability and Reporting: To ensure national security and prevent misuse, Indian exporters must maintain a detailed log of the devices, including the foreign SIM/eSIM details, and report these to the DoT via a dedicated portal.
Protection Against Domestic Use: The framework mandates strict safeguards to ensure that such foreign-connectivity-enabled devices are not activated or used within Indian territory, preserving the integrity of the domestic telecom licensing regime.
Testing and Quality Assurance: Manufacturers can conduct limited testing of these foreign SIMs within India under controlled conditions to ensure device readiness before shipment.
What is M2M/IoT Connectivity for Export? It refers to the practice of embedding a connectivity module (SIM or eSIM) into a device—such as a smart meter, a connected car component, or an industrial sensor—during the manufacturing process in India. By allowing the use of foreign SIMs, TRAI enables Indian manufacturers to ship “ready-to-use” devices that automatically connect to the specific network of the destination country, making Indian-made IoT products more competitive in the global market.
Policy Relevance
The TRAI recommendations are a strategic move to support the “Make in India” and “Production Linked Incentive (PLI)” schemes for telecom and networking products. By removing the requirement for foreign telcos to navigate Indian regulations for export-only devices, the framework significantly enhances the Ease of Doing Business for global IoT brands manufacturing in India. This regulatory clarity is expected to attract higher FDI in high-tech manufacturing and contribute to India’s goal of reaching $1 trillion in digital economy value by facilitating a seamless export pathway for connected technologies.
Relevant Question for Policy Stakeholders: How will the Department of Telecommunications (DoT) ensure that the reporting portal for foreign SIM exports is interoperable with customs and trade platforms to prevent the ‘gray market’ diversion of these devices into the Indian domestic market?
Follow the full news here: Regulatory Framework for the Sale of Foreign Telecom Service Providers