India’s telecom regulator is quietly working on something that could make a big difference for anyone building connected hardware for global markets.

The Telecom Regulatory Authority of India (TRAI) has proposed a new regulatory framework that would allow Indian manufacturers to legally embed foreign SIM and eSIM profiles into machine-to-machine (M2M) and Internet of Things (IoT) devices that are manufactured in India but meant exclusively for export.

At first glance, this might sound niche. In reality, it touches some of the most important growth areas in Indian manufacturing: electric vehicles, drones, industrial sensors, smart meters, and connected infrastructure.

This is not about tourists, roaming plans, or consumer eSIM apps. This is about how India ships connected machines to the rest of the world.

A new authorisation just for export-only connectivity

TRAI has recommended creating a separate approval category called International M2M SIM Service Authorisation, introduced under Section 3(1)(a) of the Telecommunications Act, 2023.

In plain terms, this would allow Indian companies to embed SIMs or eSIMs issued by foreign telecom providers into devices that will never be used in India, but must work immediately once deployed overseas.

TRAI’s reasoning is blunt and practical. Existing telecom rules are built around human subscribers, domestic usage, and individual KYC. Export-only connected devices fit none of those assumptions.

As the regulator puts it, foreign SIMs used in M2M and IoT devices meant for export simply cannot be regulated under consumer mobile or international roaming frameworks. They are fundamentally different products.

Why the current system breaks down

India’s telecom regulations assume that a SIM belongs to a person, is tied to identity verification, and operates within national borders. That logic collapses when applied to machines.

Manufacturers routinely assemble and test connected devices in India, then ship them abroad. Once powered on in another country, those devices must instantly connect to local networks for diagnostics, telemetry, updates, or control.

Right now, there is no dedicated legal pathway for embedding foreign connectivity into these products. Companies are forced to rely on rules designed for retail SIM cards, international roaming hacks, or post-export reconfiguration.

TRAI has acknowledged that this creates uncertainty, delays, and unnecessary costs at exactly the moment when connected hardware exports are accelerating.

Who does this actually affect

This proposal is aimed squarely at export-oriented manufacturers, not consumer electronics brands selling phones or wearables.

The biggest impact will be felt across EVs, drones, industrial IoT, and smart infrastructure.

Electric vehicle and mobility manufacturers

Modern EVs are rolling computers. Connectivity is not optional.

Vehicle tracking, battery diagnostics, fleet management, remote locking, predictive maintenance, and over-the-air software updates all depend on embedded cellular connectivity.

When Indian manufacturers export connected two-wheelers, cars, buses, or commercial vehicles, those vehicles cannot rely on Indian networks or roaming profiles.

Companies such as Ather Energy have already outlined international expansion plans with connected platforms baked into their design. Established exporters like TVS Motor Company and Bajaj Auto are shipping increasingly software-driven vehicles.

At the larger end of the market, Tata Motors and Mahindra & Mahindra integrate telematics platforms across passenger and commercial exports.

Embedding foreign SIM or eSIM profiles at the factory allows these vehicles to function immediately in Europe, the Middle East, Africa, or Southeast Asia without retrofitting or workaround solutions.

Drone manufacturers shipping ready-to-fly systems

Indian drone exports have moved beyond airframes. Buyers increasingly expect fully integrated, ready-to-deploy systems.

Enterprise and government drones rely on cellular connectivity for telemetry, tracking, geofencing, compliance, and data transmission.

Companies like DroneAcharya, Garuda Aerospace, and ideaForge have publicly discussed export orders and overseas market expansion.

Embedding and testing foreign connectivity profiles in India avoids deployment delays and removes dependence on roaming-based testing that rarely reflects real-world conditions.

Industrial IoT and smart infrastructure exports

The proposal also covers industrial sensors, asset trackers, factory automation systems, and smart meters.

India already exports smart infrastructure hardware at scale. Companies such as Genus Power Infrastructures and Secure Meters supply overseas markets across Asia, Africa, and the Middle East.

Engineering groups like Larsen & Toubro and Schneider Electric India deliver connected systems for global infrastructure projects.

Once deployed, these devices often remain in place for a decade or more. Replacing SIM cards post-installation is impractical or impossible. TRAI has explicitly recognised that these use cases cannot be treated like consumer telecom services.

What TRAI is actually proposing

The framework itself is deliberately light-touch.

Under the proposed authorisation, Indian companies could sell foreign telecom providers’ SIMs or eSIMs to Indian manufacturers building export-only M2M and IoT devices.

Key points stand out:

• Ten-year authorisation validity
• Rs. 5,000 application processing fee
• No entry fee, net worth requirement, or bank guarantee
• Online application and digital approvals

TRAI has also allowed foreign SIMs and eSIMs to be activated in India for up to six months strictly for testing and integration. After testing, the profile must be suspended and the device exported.

Commercial use within India remains prohibited.

This detail matters. Testing connectivity in realistic conditions is essential for devices that must function flawlessly overseas from day one.

Why does this come amid tighter SIM enforcement

The consultation arrives against a backdrop of stricter oversight of foreign SIM and eSIM services.

Since January 2022, foreign SIMs have been treated as tightly regulated consumer services, with passport-based verification, reporting obligations, and activation restrictions.

In early 2024, the Department of Telecommunications ordered Google Play to remove foreign eSIM apps such as Airalo and Holafly for operating without required permissions, reinforcing that digital SIM distribution falls squarely under telecom regulation.

As of late 2024, only 29 entities hold approval to sell international roaming SIMs to Indian travellers.

TRAI’s proposal draws a clear line between consumer travel SIMs and export-only machine connectivity, something the existing rules have never done cleanly.

Why operators support a separate framework

Telecom operators have backed the proposal.

In its submission, Vodafone Idea argued that manufacturers cannot properly test export-bound IoT devices using Indian SIMs or standard roaming arrangements.

Roaming increases costs and still fails to replicate real network conditions, particularly for functions such as NB-IoT, local carrier features, and over-the-air updates.

From an operator perspective, export-only M2M connectivity is a different category entirely, and trying to squeeze it into consumer frameworks benefits no one.

Conclusion: why this matters beyond India

Globally, regulators are moving in this direction. The EU, Singapore, and South Korea already treat embedded connectivity for exported devices separately from consumer telecom services. Major IoT hubs recognise that machines are not people, and their connectivity should not be regulated as if they were.

TRAI’s proposal signals that India understands this shift.

As global buyers increasingly expect vehicles, drones, meters, and industrial systems to arrive fully connected and ready to operate, regulatory friction becomes a competitive disadvantage. Countries that simplify export-ready connectivity win manufacturing contracts.

If implemented well, this framework could quietly remove one of the most persistent bottlenecks in India’s connected hardware supply chain. It aligns telecom policy with industrial reality and acknowledges that connectivity is now part of the product itself, not an afterthought.

For an export-led manufacturing economy trying to move up the value chain, that distinction is long overdue.