National Security Directive for the telecom sector approved by Union Government could be a jolt for China

New Delhi: – The Union Government approved the National Security Directive for the telecom sector, on Wednesday. Under this, the government will be preparing a list of secured and trustworthy suppliers and sellers of telecom equipment. Also, some companies from the telecom equipment sector will be blacklisted. Ravishankar Prasad, Minister for Information and Broadcasting, made this announcement. It is claimed that this government decision could be a jolt for China.

Union Minister Prasad said that the government has decided to prepare a list of trustworthy suppliers prioritising the security of the telecom sector. National Security Directive has been approved for this purpose. Under this, a supply chain will be created for the purchase of equipment for the companies from the telecom sector. A list of trustworthy suppliers and sellers from the telecom sector will be prepared for this. Some of the companies will also be blacklisted. Prasad said that after these lists are ready, the companies in the telecom sector will have to get connected with these trustworthy suppliers and sellers. A committee will be formed to prepare this list. Union Minister Prasad informed that the committee would have members from the departments connected with the telecom sector, representation from the ministry, two representatives from the industry and expert analysts. But Ravishankar Prasad dodged the question, ‘Is the National Security Directive being prepared to target the Chinese companies?’

But it is being claimed that the objective behind this is to target the Chinese companies. Huawei and ZTE are already facing allegations of espionage around the globe. Some of the countries have even banned these companies citing national security issues. In June, following the Galwan conflict, the Indian government amended the rules to exclude Chinese companies from participating in the tenders of the government companies in the telecom sector.

India is the second-largest telecom market in the world. The number of telephone connections in the country is a whopping 1.17 billion. The revenue generated is over 2.5 trillion. The telecom equipment market is more than USD 25 billion. But most of the suppliers of telecom equipment are from China and India is importing telecom equipment on a massive scale from China. But now the government seems to be taking steps to stop the expansion of these Chinese companies. Interests of the Indian companies from the sector is under threat because of these Chinese companies. Complaints have been received that the Indian companies cannot compete with cheap Chinese products. It had been reported a few months ago that the government was planning to formulate a policy after holding talks with the companies from this sector. Against this background, the approval of the National Security Directive becomes significant.

Since the Galwan Valley conflict, India is delivering successive economic jolts to China, and has banned 267 Chinese apps, blaming them of being a threat to national security and also accusing of data theft.