New Delhi | December 31, 2025: In a significant move aimed at strengthening India’s export-oriented technology ecosystem, the Telecom Regulatory Authority of India (TRAI) has issued key recommendations to simplify the sale and use of foreign SIM and eSIM cards in export-focused IoT (Internet of Things) and M2M (Machine-to-Machine) devices. The telecom regulator has proposed a light-touch regulatory framework, designed to reduce compliance costs and procedural hurdles for Indian manufacturers.
According to TRAI, foreign SIM/eSIMs used in IoT and M2M devices meant exclusively for export should be regulated under a new authorisation regime within the ambit of the Telecommunications Act, 2023. The proposed framework has been named “International M2M SIM Service Authorization”, and is intended to bring regulatory clarity while supporting India’s growing role in global connected-device manufacturing.
Which companies will benefit?
TRAI has clarified that Indian companies registered under the Companies Act and engaged in manufacturing IoT or M2M devices for export will be eligible for this authorisation. A key highlight of the proposal is the simplicity of eligibility conditions, aimed at encouraging innovation and participation, especially from startups and small manufacturers.
Under the proposed framework:
- No entry fee will be charged
- No minimum net worth or equity requirement will apply
- No bank guarantee or recurring authorisation fee will be required
- Only a one-time application processing fee of ₹5,000 will be levied
The authorisation will be valid for 10 years, and the entire process will be conducted online. TRAI has recommended issuing auto-generated authorisations using digital signatures, significantly cutting down on time and administrative costs for businesses.
Six-month activation allowed for testing
Another important recommendation relates to product testing. TRAI has proposed that foreign telecom operators’ SIM or eSIM cards may be permitted to remain active in India for up to six months for testing purposes. This will help manufacturers test export-bound devices domestically before shipping them to overseas markets.
However, the regulator has underlined the need for inter-ministerial coordination to implement this smoothly. TRAI has advised the Department of Telecommunications (DoT) to work closely with the Ministry of Finance, Ministry of Commerce, and other relevant departments to develop a clear and unified regulatory framework for the import and export of SIM and eSIM cards.
Boost to Make in India and exports
TRAI believes the proposed framework will significantly enhance the global competitiveness of Indian IoT and M2M manufacturers. By aligning domestic regulations with international practices, Indian exporters will find it easier to meet foreign market requirements and scale their operations.
The regulator has noted that the move will not only expand India’s export potential, but also give fresh momentum to the Make in India initiative. Products such as smart meters, connected vehicle systems, industrial machines, and smart home devices manufactured in India are expected to become more attractive in global markets.
What are M2M and IoT?
M2M (Machine-to-Machine) refers to technology that enables two or more machines to communicate and exchange data directly, without human intervention. Using sensors, software, and network connectivity, machines can automatically transmit and receive information.
IoT (Internet of Things) builds on M2M technology to create a larger network of internet-connected devices. These smart devices collect data, process it via the internet, and can independently trigger actions or decisions. Examples include smart meters, connected cars, industrial automation systems, and smart home devices.
Why the proposal matters
Industry experts say TRAI’s recommendations could substantially reduce regulatory friction that has traditionally made the use of foreign SIM/eSIMs complex and expensive. Such barriers have often limited the ability of Indian companies to compete with global peers.
If the government accepts and implements these recommendations, the move could mark a turning point in positioning India as a global hub for IoT and M2M manufacturing, reinforcing the country’s role in the rapidly expanding connected-device economy.
