Draft Telecom Policy 2025: India Eyes 50% Import Substitution

Pushing for self-reliance, India’s draft Telecom Policy 2025 sets bold targets for indigenous gear, 5G spectrum debates, and nationwide connectivity, while operators flag funding and fibre hurdles.

India’s draft National Telecom Policy 2025 (NTP-25) has set ambitious goals for indigenous equipment, connectivity expansion and private 5G networks, sparking debate across the industry.

The policy, currently under public consultation, proposes a sharp increase in domestic manufacturing and greater reliance on locally designed and developed telecom gear to reduce import dependence.

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According to a report by the Financial Express, industry body Voice of Indian Communication Technology Enterprises (VoICE) has urged the Department of Telecommunications (DoT) to mandate indigenous components across networks, citing national security concerns.

It called for a “Rip and Replace” programme to phase out Chinese-origin equipment and SIM cards, supported by compensation through the universal service obligation fund.

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Additional recommendations included direct spectrum allocation for private 4G/5G enterprise networks, tighter origin audits, R&D grants of ₹200 billion, access to the source code of programmable equipment, and a sovereign patent fund for essential technologies.

The draft aims to raise domestic telecom output by 150% and substitute 50% of imports with Indian-made products by 2030. VoICE argued that most short-term requirements, barring integrated circuits, can be locally met, while the long-term goal should be full control of critical sectors, including telecom, defence and power.

However, the Cellular Operators Association of India (COAI) opposes direct enterprise spectrum allocation, instead suggesting spectrum leasing or network slicing. It warns that bypassing auctions could reduce government revenues, create uneven competition and heighten security risks.

Operators have also flagged gaps in the draft, particularly the absence of adjusted gross revenue (AGR) reforms and a lack of clarity on levies. High spectrum costs and hardware expenses, they argue, already squeeze margins. Logistical hurdles such as fibre deployment in dense urban areas remain another bottleneck.

NTP-25 sets targets of 100% 4G coverage, 90% 5G access, and 80% tower fibre-isation by 2030, alongside expanding broadband to 100 million homes and one million public Wi-Fi hotspots.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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