TRAI clears framework for foreign SIMs in export-bound IoT devices

MUMBAI: Sometimes regulation doesn’t tighten the screws, it oils the engine. The Telecom Regulatory Authority of India (TRAI) has recommended a new, export-friendly framework that could quietly turbocharge India’s machine-to-machine (M2M) and Internet of Things (IoT) ambitions.

In a set of recommendations released this week, Telecom Regulatory Authority of India has proposed a dedicated regulatory pathway for the sale of foreign telecom service providers’ SIM and eSIM cards embedded in M2M and IoT devices meant solely for export. The move addresses a long-standing gap faced by Indian manufacturers shipping smart meters, connected vehicles and industrial sensors overseas.

The proposal follows a request from the Department of Telecommunications (DoT), which had sought clarity on the terms for issuing and renewing no-objection certificates for such SIM imports. After a consultation paper in July 2025, stakeholder feedback from nine respondents and an open house discussion in September, TRAI has now put its cards on the table.

At the heart of the recommendation is a new, light-touch licence titled the International M2M SIM Service Authorisation, to be issued online through an auto-generated, digitally signed process under the Telecommunications Act, 2023. Any company registered under the Indian Companies Act would be eligible, with no entry fee, net-worth requirement, bank guarantee or annual authorisation charge. The only cost: an application processing fee of Rs 5,000, with the authorisation valid for 10 years.

TRAI has also proposed limited activation of foreign SIMs within India for testing purposes, capped at six months, allowing manufacturers to validate performance before exporting devices.

Beyond easing paperwork, the regulator has urged DoT to coordinate with ministries such as Finance and Commerce to create a clear, end-to-end framework for both importing foreign SIMs for export-bound devices and exporting Indian SIMs embedded in devices meant for overseas markets.

The significance is less about SIM cards and more about scale. With M2M and IoT now underpinning energy grids, transport systems, agriculture and water networks, the lack of regulatory clarity has been a friction point for Indian exporters. TRAI’s recommendations aim to remove that bottleneck while keeping security concerns in view.

If accepted, the framework could give a quiet but meaningful boost to the Government’s Make in India push, making Indian-built, globally connected devices easier to sell and harder to ignore in international markets.