One of the policy issue in telecom approved by the Committee of Secretaries and awaiting the approval of the cabinet is that 30% of the telecom equipments should be purchased from Indian companies by both the government and private telecom companies. This is being objected to by the MNCs as they are opposed to any reservation so that they can continue to make huge profits from the Indian market.Many of these companies are from US viz. Cisco, Motorola, H.P., Dell etc.
Now the US government has intervened. It says that how there can be any discrimination against foreign companies. It has also asked the GOI why such a policy is being introduced?
No sovereign country can accept such dictates. But from the past experiences of the GOI dependence on the US, there is every possibility that it may succumb to the US pressure. If GOI succumbs, it will be a great loss to the Indian industries.