As per TRAI, merely 12-13 per cent of locally manufactured goods with the support of foreign vendors were used in the sector for the period of 2009-10.
The government has received the biggest ever investment proposal worth Rs 17.7 billion from a domestic company to manufacture telecom products.
“Our policies have attracted investors. The aim of the government is to reduce dependence on imports. In total investment that we have received so far there is Rs. 1,770 crore proposal from an Indian firm for manufacturing telecom products,” informed DEITY Joint Secretary Ajay Kumar without revealing the name of the firm. He further added that the application is under review and is likely to be approved by inter-miniterial panel in a month, reported NDTV.
The Department of Electronics and Information Technology under National Policy on Electronics 2012, further supported by National Telecom Policy 2012 has received investment proposal of Rs 45.9 billion to manufacture electronic products including telecom and IT products.
An industry source informed that though Government has introduced good policies in the past, but current reconsideration by it on Preferential Market Access Policy is sufficient to stir investor’s confidence. Telecom sector has already been experiencing a fall in investments owing to regulatory uncertainty.
The Cabinet approved the PMA policy in February last year that seeks domestically manufactured electronic products which have security repercussions.
The PMO has put the policy on hold saying it will ‘revisit and review’ the full policy for rendering preference to domestically manufactured electronic goods.
As per regulator TRAI, merely 12-13 per cent of locally manufactured goods with the support of foreign vendors were used in the sector for the period of 2009-10. Also, entirely India-made products constituted only 3 per cent of the market.
The government has approved proposals worth Rs 9.6 billion from the total investment proposal received for domestic manufacturing, which include investment from Bosch Electronics, Samsung and an Indian company Sahasra Electronics.
