India’s telecom regulator has recommended allowing foreign SIM and eSIM cards to remain active in the country for up to six months while companies test connected devices built for export. The proposal addresses a specific manufacturing problem: Indian companies need to verify that export-bound smart meters, connected vehicles and industrial sensors will work on overseas telecom networks before they leave the country.
 

The Telecom Regulatory Authority of India released the recommendations on December 30, 2025, after receiving a reference from the Department of Telecommunications. Under the proposed framework, foreign telecom providers’ SIM and eSIM cards could be activated in India for testing export-focused machine-to-machine and Internet of Things devices for a maximum of six months. This matters for anyone tracking India's ambitions as a manufacturing hub, since it lets device makers validate connectivity here before shipping products abroad, without navigating a separate country's telecom bureaucracy first.

The process began when the Department of Telecommunications asked TRAI on September 17, 2024, to recommend terms for issuing and renewing permissions covering the import and sale of foreign telecom providers’ SIM and eSIM cards. TRAI issued a consultation paper on July 4, 2025, received submissions from nine stakeholders and held an online open house discussion on September 25, 2025, before finalising its recommendations.
 

TRAI proposes a new authorisation for foreign M2M SIM Services

At the centre of the recommendations is a new category called the International M2M SIM Service Authorisation. It would regulate the sale of foreign telecom providers’ SIM and eSIM cards for use in M2M and IoT devices manufactured in India for export. TRAI has proposed granting the authorisation online through a digitally signed, automatically generated approval valid for 10 years. The processing fee is Rs 5,000, and TRAI has proposed zero entry fees, per the regulator's PIB release. That combination, long validity and low cost, signals TRAI wants to make this an easy category to enter rather than a gated one.

The low-cost structure reflects TRAI’s proposed “light-touch” approach. Rather than limiting the category to large telecom companies, the recommendations would allow eligible Indian companies to participate without meeting substantial financial thresholds.
 

The timing lines up with a broader shift. The recommendations are focused specifically on industrial and connected devices meant for export, rather than consumer smartphone eSIM services. TRAI has presented the proposal as a way to support connected products such as smart meters, connected cars and industrial sensors that must work on telecom networks in their destination markets.

Which devices could use foreign eSIMs?

The proposed framework could affect manufacturers working across energy, transport, water management, agriculture and industrial automation. TRAI specifically referred to products such as smart meters, connected cars and industrial sensors.

These devices may be built in India but designed to operate on mobile networks in another country. Manufacturers therefore need access to the appropriate foreign connectivity profile while integrating and testing the product before export.

According to TRAI, India currently has no dedicated regulatory framework governing the sale of foreign telecom providers’ SIM and eSIM cards for use in export-bound M2M and IoT products. The proposed authorisation is intended to create regulatory clarity while also addressing security concerns linked to activating foreign telecom connections inside India.

TRAI Also Wants Clearer Import and Export Rules

TRAI has asked the Department of Telecommunications to coordinate with ministries including the Ministry of Finance and the Ministry of Commerce to establish a clearer framework for two-way movement of connected SIM products.

This would cover both the import of foreign telecom providers’ SIM and eSIM cards for devices manufactured in India for export, and the export of Indian telecom providers’ SIM and eSIM cards for use in devices being manufactured abroad for the Indian market.

This coordination will be essential because telecom authorisation alone may not resolve customs, trade and import compliance requirements.

Consumer eSIMs and industrial eSIMs are not the same

TRAI’s recommendations do not primarily concern people converting their mobile numbers from physical SIM cards to eSIMs. They address foreign telecom profiles embedded in machines and connected products manufactured for overseas markets.
 

A consumer eSIM connects a smartphone or wearable to an Indian telecom operator. The proposed International M2M SIM Service Authorisation, by contrast, would cover foreign SIM and eSIM cards placed inside export-bound products that must connect to networks in another country.
 

Why exporters need the six-month testing period?

An export-bound connected device cannot be treated like a conventional electronic product. Its embedded connectivity must be configured, tested and integrated with the telecom profile it will use in the destination country.
 

Allowing a foreign SIM or eSIM to remain active in India for up to six months would give manufacturers time to complete product integration and connectivity testing before shipment. The proposed limit also keeps the facility tied to manufacturing and testing rather than ordinary telecom use.

How the proposal supports Make in India ?

TRAI has linked the proposed framework to the government’s Make in India programme. Indian manufacturers producing connected equipment for global markets need to deliver devices that can operate immediately in their destination countries.

A regulated route for sourcing and testing foreign SIM and eSIM cards could make Indian-built M2M products more attractive to international buyers. It may also help local companies compete with established global manufacturers that already have access to international connectivity-testing arrangements.

The commercial impact, however, will depend on how quickly the government converts the recommendations into enforceable rules and aligns them with customs and trade procedures.

The fine print users still run into

New eSIM activations across all carriers come with a mandatory 24-hour SMS bar under Department of Telecommunications rules, a security measure that affects only initial setup and not data connectivity. It's a small friction point but one that catches first-time eSIM users off guard, especially those switching from a physical SIM expecting instant full service.
 

What comes next ?
 

TRAI’s recommendations attempt to solve a practical gap in India’s export manufacturing system. Connected devices built for another country must be tested with the telecom profile they will use after shipment, yet India currently has no dedicated framework governing the sale of those foreign SIM and eSIM cards.

The proposed authorisation combines a six-month testing allowance with a low-cost, 10-year approval for eligible Indian companies. The next step will depend on the Department of Telecommunications and other ministries converting these recommendations into a workable regulatory and trade framework. Until that happens, the proposal remains an important policy recommendation rather than an operational facility.