With Little Force for Telecom in Budget 2018, it May Not Contribute Much to Digital India: CMR

Earlier today, the Budget 2018 was tabled by the finance minister Arun Jaitely. The Indian Government announced Rs 10,000 crore for the development of telecom infrastructure in the 2018-19 fiscal. CMR India says that the budget proposal has nothing concrete to propose that could destress the telecom sector. Even though in the long range, initiatives like setting up of test bed by DoT along with IIT Chennai for 5G technology indigenisation and Niti Aayog to be made the anchor organisation for driving AI and Machine Learning in India shall have a positive bearing as these are steps to make India future ready.

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The increase in imports duty from 15% to 20% on handsets is going to give more measurable reason for brands to Make in India. Other than this, but there is no such proposal that could support the Telecom sector to coup up with the legacy deficiencies while attempting to bring the latest to the consumers said CMR in the report.

For Digital India initiative, Telecom is a critical resource, unless it is not strengthened and supported holistically through short, medium and long-range interventions, the sector would not be in a position to take forward the country towards a trillion-dollar digital economy with all its potential.

“There is complete silence on providing any immediate relief to the sector which is facing rising liabilities as well as declining revenues. In such a scenario, the sector shall only become weaker and won’t be able to employ full potential behind the transformation to a digital economy,” added Faisal Kawoosa, Principal Analyst, Telecom and ESDM in the report.