As US-China tariff war escalates, DoT makes a 'Chinese request' to Airtel, Reliance Jio and Vodafone-Idea

India’s Department of Telecommunications (DoT) has requested all telecom operators to submit details of Chinese equipment in their networks, as tensions rise in the US-China tariff war. “The Department of Telecommunications (DoT) has written recently to all telcos (Airtel, Reliance Jio and Vodafone-Idea) to provide details of Chinese equipment in their networks,” a source told the Economic Times. The move aims to monitor potential security risks in India’s telecom infrastructure.
According to Economic Times, the Centre has recently made it clear that it would not encourage foreign direct investment (FDI) from China, despite the tariff war between the two largest economies on the planet.

Multiple sources indicate that the Indian government is tracking Chinese involvement in India’s communication networks to preempt vulnerabilities. Despite the tariff war potentially boosting India-China trade, the government has firmly stated it will not encourage Foreign Direct Investment (FDI) from China. This follows a similar DoT exercise last year to assess the prevalence of Chinese-linked SIM cards.

Chinese vendors like Huawei and ZTE, barred from India’s 5G rollouts, continue to service portions of 4G infrastructure for Bharti Airtel, Vodafone Idea, and 2G networks of Bharat Sanchar Nigam Ltd. (BSNL). “Huawei gets around Rs 600 crore from Indian telecom operators annually as maintenance charges,” another source told ET. While permitted to maintain existing equipment, these companies are excluded from new contracts.

Since 2021, post the India-China border clash, the National Security Council Secretariat mandates that telecom suppliers be certified as “trusted sources.” Companies like Ericsson, Nokia, and Samsung have secured approvals, while Huawei and ZTE have not. “The share of Chinese firms is coming down…if any equipment needs to be replaced will depend on the details provided by the telcos,” an official noted.
The government is not planning to replace existing Chinese equipment due to high costs for operators like Airtel and Vodafone Idea. However, with over 200 million subscribers still on 2G and some on 3G, older Chinese-chipped SIM cards may need future replacement. India is prioritizing local 4G and 5G technology development to reduce reliance on foreign suppliers and position itself as a telecom equipment exporter.