Domestic Tech Security Firms get Priority in Govt. Purchases

• 16 Jul 2018

Recently, the Ministry of Electronics and Information Technology (MeitY) passed an order that notified Cyber Security as a strategic sector and preference shall be provided to procure domestically manufactured/produced Cyber Security Products.

Key Highlights

• The government has mandated giving preference in all public procurement to locally produced cybersecurity products where intellectual property rights are owned by companies or startups incorporated in India.
• The notification is based on Public Procurement (Preference to Make in India) Order 2017 which aims to enhance income and employment in the country.
• Preference will be granted to a firm incorporated and registered in India or to start-up firms that meet the prescribed definition, provided revenue from the product and intellectual property licensing accrues to the firm in India.
• Intellectual Property (IP) registration is not mandatory; however, a firm claiming benefit should have the right to use and commercialize the product without third party-consents, distribute and modify it.
• It is important for India to use and promote indigenous cybersecurity products to protect its information space as well to promote startups and ensure economic prosperity.

Background

• Ever since its digital transformation has gained pace, India has been at the epicenter of cyber attacks executed by cybercriminals, hacktivists and mostly non-state actors.
• As per information provided by Indian Computer Emergency Response Team (CERT-In), a total no. of 53081 cyber security incidents were observed during the year 2017.
• India continues to be second most impacted by spam and bots, third most impacted by network attacks, and fourth most impacted by ransomware.