Is Indian Telecom Depending Too Much On China?

Is Indian Telecom Depending Too Much On China?

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Bangalore: India, known to be one of the world’s fastest growing telecom markets, has been warned by the National Security Council over importing telecom equipment from China, which are reported to pose significant amount of national security hazards, reports Rediff.

In 2011-2012, India imported 52, 400 crore (524 billion) worth of telecom equipment and it is estimated that the figures in 2012-2013 will match or cross that number.

In the last winter session of Parliament, Milind Deora, Minister of State for Communications and Information Technology told Lok Sabha that ‘wireless equipment with sufficient value addition are not being manufactured in the country.’

This calls for adequate policy measures to encourage more investment in building domestic capacity for manufacturing telecom infrastructure equipment. Besides, it also means that the Indian telecom backbone is made in China. Although western companies like Cisco compete, Chinese firms such as Huawei and ZTE, who are basically backed by states, tend to come up with more profit.

Read more: Top 10 Indian Telecom Companies

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