Cyber Security ‘Strategic Sector’, Domestic Firms To Get Top Priority In Software Procurement

In a notification regarding the procurement of cyber security products, the Ministry of Electronics and Information Technology has defined a separate category of cyber security products and accorded first preference to Indian firms, The Hindu has reported.

The notification also identifies cyber security as a ‘strategic sector’. Cyber security products are defined as, "a product or appliance or software manufactured/produced for the purpose of protecting, information, equipment, devices computer, computer resource, communication device and information stored therein from unauthorised access, use, disclosure, disruption, modification or destruction."

Local suppliers who are incorporated in India or startups that meet the 'prescribed definition' will be given the first preference during procurement as per the ministry. The revenues from the product and intellectual property should accrue to the firm in India as per the notification. Further, the company's intellectual property (IP) need not be registered in India to secure the benefits of being a local supplier. Re-sellers, dealers, distributors, support service providers who may have rights to IP are excluded from the scheme.

The move is inline with the government's policy to encourage domestic production as part of the wider 'Make In India' drive.