Trai Proposes Rs 1000 Crore Fund for Local Manufacturing of Telecom Gear

The Telecom Regulatory Authority of India (Trai), in a bid to force local manufacturing of telecom gear has now recommended that India aim for ‘net zero imports’ of telecom equipment by 2022. The Indian regulator also proposed the creation of a Rs 1000 crore fund to promote design, testing and production in this space. The recommendations, which are 18 in total are entirely aimed at transforming the telecom manufacturing sector from being “import-dependent” to a global hub of indigenous manufacturing. Trai also noted that while telecom services have grown at a scorching pace, telecom equipment manufacturing has not kept up.

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“India should aim to achieve the objective of ‘net zero imports of telecommunication equipment’ by 2022. For this purpose, Telecom Equipment Manufacturing Council (TEMC), should identify and recommend specific areas of priorities,” Trai said in a statement.

According to data available, the export of ‘telecom instrument’ stood at USD 1201.7 million, while imports totalled USD 2,1847.92 million in 2017-18. Most of the demand for telecom equipment has been met through imports, Trai noted.

Trai has also recommended that the progress of indigenous telecommunication equipment manufacturing in the country be monitored in the Telecom Department at least at the level of Member, Telecom Commission.

It also said a dedicated unit (within the department) be made responsible for facilitation of manufacturing related activities. It has also emphasised that indigenous products be given preference in all public telecom network for security reasons under preferential market access policy.