New Delhi: The Telecom Regulatory Authority of India (TRAI) has recommended a streamlined approval framework to enable Indian manufacturers to use foreign SIM and eSIM cards in Internet of Things (IoT) and machine-to-machine (M2M) devices intended for export, aiming to boost competitiveness of “Made in India” connected products in global markets.

Many Indian companies producing smart meters, connected vehicles, industrial sensors, and other IoT-enabled equipment face challenges when their devices need foreign SIM cards to function smoothly abroad. Until now, the regulatory environment lacked clarity on the rules governing the sale and use of foreign SIMs for export-only devices. This has created barriers for Indian exporters who seek to integrate such devices into international infrastructure systems.

In its recommendation, TRAI highlighted that M2M and IoT technologies are transforming core infrastructure across sectors including energy grids, water supply networks, transportation systems, and agriculture. Indian firms are increasingly developing these products for global deployment, making regulatory clarity essential for supporting exports and international competitiveness.

TRAI proposed a new “light-touch” approval mechanism, termed the International M2M SIM Service Authorisation, under the Telecommunications Act, 2023. Under this framework, companies registered in India could obtain digitally signed approvals online with minimal administrative burden. The regulator specified that there would be no license fee or financial conditions, except for a one-time application fee of ₹5,000, with approvals valid for a period of ten years.

To facilitate product testing, TRAI also recommended allowing foreign telecom providers’ SIM or eSIM cards to be activated in India for up to six months. This would enable manufacturers to test devices domestically before exporting them to international markets, addressing a critical practical requirement for IoT product developers.

The regulator further suggested that the Department of Telecommunications coordinate with other ministries to establish a clear system for the import of foreign SIMs for export devices and the export of Indian SIMs for use in devices sold overseas. This is intended to provide certainty for manufacturers and streamline compliance processes, ensuring security while reducing bureaucratic hurdles.

According to TRAI, the proposed framework would complement the government’s Make in India initiative by facilitating the production of connected devices for global markets. By reducing regulatory friction, Indian IoT products could compete more effectively internationally, while the prescribed rules would continue to safeguard national security interests.

The recommendations were developed after a process of public consultation and have been forwarded to the government for consideration and potential implementation. If adopted, the framework could mark a significant step toward simplifying regulatory compliance for Indian IoT manufacturers, enabling broader participation in global technological ecosystems and encouraging innovation in the rapidly expanding M2M and IoT sectors.

The TRAI move is expected to benefit Indian companies targeting overseas markets, particularly in sectors where connectivity and data transmission are integral to the functionality of devices. It also aligns with India’s broader economic objectives of export diversification, digital infrastructure development, and fostering high-tech manufacturing capabilities.