India: Tech Import Restrictions Are for Security

India’s proposal to restrict imports of an array of high-tech products, a move that Western companies fear could significantly undermine their business plans in the country, is aimed at protecting the nation’s security while encouraging more local manufacturing, the government said Wednesday.

The Indian government’s draft regulations, which were reviewed by The Wall Street Journal, would require that a substantial percentage of technology hardware purchased by government agencies and some companies — ranging from Wi-Fi devices to network switches — come from India-based manufacturers. Foreign players would have to swiftly set up local factories to market their products here.

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