India to become telecom equipment hub

Tuesday, 14 September 2004, 19:30 IST
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NEW DELHI: Backed by robust growth in the phone users' base and a vibrant IT industry, India can emerge as the global hub for making telecom equipment, IT and Communications Minister Dayanidhi Maran said here Monday. "India now not only provides a huge market but also an investor-friendly environment," he told a conference on development of the telecom equipment manufacturing sector. "Telecom equipment is increasingly dependent on software. India, being the leader in software development, has distinct advantage over other countries in developing and manufacturing low-cost telecom products." Maran said the government would strive to promote indigenous manufacture of telecom equipments. "The government has recently constituted a core group on infrastructure and I am happy that telecommunications has been identified as a priority sector," he told telecom industry leaders. Maran said telecom equipment manufacturing needed to occupy a "prominent place" on the manufacturing canvas in India in the years ahead. "With 85 million telephone connections and an annual turnover of nearly 600 billion, employing directly and indirectly about five million people, the strength and significance of this sector cannot be over-emphasised. "There are enough reasons to indicate that the growth rate in this sector will be a long-term phenomenon, and there is considerable potential for rapid growth both in the urban and rural sectors." Maran urged local telecom industry representatives to take advantage of the thriving telecom sector in India through indigenous manufacture. "Besides, there is the additional market, at least in the Asia-Pacific region that is recognised as the fastest growing region in the telecom sector. A sound manufacturing base in India can derive significant advantage by way of exports." Maran said the telecom industry must reduce the time taken for research and development to translate technological innovations into commercial production. "Worldwide, major manufacturers of telecom equipment lead the telecom service providers to introduce new products and technologies and constantly upgrade their networks to provide more and more value-added services. "On the contrary, the tendency in India has so far been to tailor manufacturing to suit the requirements of telecom service providers. A paradigm shift therefore needs to be brought about," he said.
Source: IANS