India is working towards discontinuing the use of equipment from Chinese companies such as Huawei and ZTE amid tensions along the Line of Actual Control (LAC).
Though there is no formal ban, the government has asked domestic telecom players to avoid using Chinese equipment in future investments, including 5G networks, a Financial Times report has said.
Moneycontrol could not independently verify the story.
"It's open now that the government is not going to allow Chinese equipment," a telecom industry executive told Financial Times. "There is now clarity ...It's really game over."
The telecom industry "has already disallowed 5G testing with Chinese vendors", the executive said.
There has been an informal call in India to boycott Chinese goods. Investments and contracts with Chinese companies have come under increased scrutiny after a clash between Indian and Chinese soldiers at Galwan Valley in Ladakh.
India is unlikely to impose a formal ban on Chinese equipment since it might provoke a tough response from Beijing, a government official told Financial Times.
"The thinking is: 'Let's do tough rather than talk tough'," the official said. "We don't want to make life miserable for consumers. But when it comes to big public contracts and critical infrastructure, we would prefer non-Chinese companies. That message has gotten through to Indian business."
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