Key Takeaways:
- TRAI proposes an “International M2M SIM Service Authorisation” to allow foreign SIMs in export-bound IoT hardware.
- The scheme features an online, light-touch process with a Rs 5,000 processing fee and 10-year validity.
- Foreign SIMs in IoT devices will be permitted for testing in India for up to six months, balancing exporters’ needs with security checks.
- The move aims to boost Make in India exports and calls for coordination across ministries for a harmonised trade and compliance framework.
New Delhi — The Telecom Regulatory Authority of India has recommended a new regulatory framework to permit the use of foreign telecom operators’ SIM and eSIM cards in machine-to-machine and Internet of Things devices destined for export markets. The move is intended to close a regulatory gap that has constrained manufacturers of smart meters, connected vehicles and industrial sensors that must ensure connectivity in overseas destinations.
Foreign SIMs in IoT devices and the new authorisation
Under the proposals, TRAI would introduce an “International M2M SIM Service Authorisation” under the Telecommunications Act, 2023. The regime is designed to be light touch and fully digital. Authorisation applications would be submitted online and approvals would be digitally signed and auto-generated, shortening lead times for manufacturers and exporters.
Any company registered under the Indian Companies Act would be eligible to apply. TRAI has proposed zero entry fee, no authorisation fee, and no minimum equity, net worth or bank guarantee requirements. Applicants would be required to pay only a processing fee of Rs 5,000. Once granted, the authorisation would be valid for ten years.
The regulator has also proposed permitting foreign SIM and eSIM cards to remain active in India for testing and quality assurance for up to six months. That provision recognises practical needs in production and verification of devices that must operate seamlessly in the networks of destination countries.
TRAI emphasised that a clear, predictable framework will help Indian manufacturers compete in global markets. The authority advised the Department of Telecommunications to coordinate with other central ministries, notably Finance and Commerce, to ensure a harmonised approach that covers both the import of foreign SIMs for export-bound equipment and the export of Indian SIM technology to overseas buyers.
Regulatory safeguards and compliance checks are central to the recommendations. While the framework seeks to minimise administrative friction for exporters, it also proposes measures to address security and lawful interception obligations through coordinated oversight with relevant ministries and agencies.
Industry stakeholders welcomed the principle behind the proposal, noting that many devices require operators’ profiles native to destination markets. Allowing tested foreign SIMs to be embedded at the manufacturing stage reduces rework, lowers logistics costs and speeds time to market for export consignments.
Beyond operational benefits, TRAI framed the move as a boost to the Make in India initiative. By enabling domestic firms to integrate international connectivity solutions without regulatory uncertainty, the recommendations aim to improve the international competitiveness of Indian IoT and M2M products and expand export opportunities for local suppliers.
The proposal still needs consideration and finalisation by the Department of Telecommunications and coordination across ministries. If accepted, the new authorisation category could simplify cross-border device certification and support growth in a sector that is increasingly important to digital infrastructure and industrial modernisation.
For exporters and device manufacturers, the proposed regime promises a simpler compliance route and longer-term certainty. For regulators and policy makers, the challenge will be to balance trade facilitation with national security and consumer protection obligations as international connectivity becomes integral to a growing range of products.
