Government to give preference to locally manufactured security products

To drive the ambitious Make in India initiative and promote manufacturing in the country, the Government has issued a mandate to give preference to locally produce cyber security products in all public procurement. The intellectual property rights of these cyber security products have to be owned by companies or start-ups incorporated in India.

Ministry of Electronics and Information Technology (MeitY) in the order said that Cyber Security being a strategic sector, all the procuring entities shall give preference to domestically manufactured/produced Cyber Security Products.

The notification is based on Public Procurement (Preference to Make in India) Order 2017 which aims to enhance income and employment in the country.

A firm which is incorporated and registered in India or a start-up firm that meets the prescribed definition will get the preference, provided the revenue from the product and intellectual property licensing accrues to the firm in India. As per the order, though IP registration is not mandatory in the country, a firm claiming benefit should have the right to use and commercialize the product without third party-consents, distribute and modify it.