A press release from the Department of Telecommunications indicates the GOI will seek to boost its procurement of domestically manufactured electronic products–including telecom equipment–for government use and industries affecting national security.
The National Telecom Policy-2012 (NTP-2012), inter-alia, has the following objectives to give a boost to the Indian telecom equipment manufacturers in the country:
The full policy paper is available here
Despite the boost to local manufacturers, India may have a genuine case about using locally constructed equipment. Huawei, a Chinese firm often cited with ties to the military, has been under investigation by the US House of Representatives Permanent Select Committee on Intelligence for over a year regarding alleged reports of espionage. In addition, US diplomatic cables released by Wikileaks shows substantive internal US and foreign government reporting with concern growing around companies like Huawei.