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Telecom Equipment Manufacturing Growth

The telecom equipment manufacturing sector in India has grown significantly over the past decade due to government policies and rising demand. Production increased from Rs. 14,400 crore in 2002-03 to a projected Rs. 50,000 crore in 2009-10. Exports also increased substantially from Rs. 402 crore to a projected Rs. 13,500 crore over the same period. Many large telecom companies have established manufacturing bases in India, attracted by the opportunities in the growing mobile market. The government has taken steps like establishing promotion councils to support the development of India as a telecom manufacturing hub.

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20 views2 pages

Telecom Equipment Manufacturing Growth

The telecom equipment manufacturing sector in India has grown significantly over the past decade due to government policies and rising demand. Production increased from Rs. 14,400 crore in 2002-03 to a projected Rs. 50,000 crore in 2009-10. Exports also increased substantially from Rs. 402 crore to a projected Rs. 13,500 crore over the same period. Many large telecom companies have established manufacturing bases in India, attracted by the opportunities in the growing mobile market. The government has taken steps like establishing promotion councils to support the development of India as a telecom manufacturing hub.

Uploaded by

catchvidh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Performance of telecom equipment manufacturing sector 

As a result of Government policy, progress has been achieved in the manufacturing of telecom equipment in the country.
There is a significant telecom equipment-manufacturing base in the country and there has been steady growth of the
manufacturing sector during the past few years. The figures for production and export of telecom equipment are shown in
table given below:

                                                                                                                           (Rs. in crore)

Year Production Export

2002-03 14400 402

2003-04 14000 250

2004-05 16090 400

2005-06 17833 1500


2006-07 23656 1898
2007-08 41270 8131

2008-09 48800 11000


50000 13500
2009-10
(projected @ 18%) (projected @ 25%)

Rising demand for a wide range of telecom equipment, particularly in the area of mobile telecommunication, has provided
excellent opportunities to domestic and foreign investors in the manufacturing sector. The last two years saw many
renowned telecom companies setting up their manufacturing base in India. Ericsson set up GSM Radio Base Station
Manufacturing facility in Jaipur. Elcoteq set up handset manufacturing facilities in Bangalore. Nokia and Nokia Siemens
Networks have set up their manufacturing plant in Chennai. LG Electronics set up plant of manufacturing GSM mobile
phones near Pune. Ericsson launched their R&D Centre in Chennai. Flextronics set up an SEZ in Chennai. Other major
companies like Foxconn, Aspcom, Solectron etc have decided to set up their manufacturing bases in India.

The Government has already set up Telecom Equipment and Services Export Promotion Council and Telecom Testing and
Security Certification Centre (TETC). A large number of companies like Alcatel, Cisco have also shown interest in setting up
their R&D centers in India.  With above initiatives India is expected to be a manufacturing hub for the telecom equipment.

Indian Telecommunications at a glance

(As on 31st March 2010)

Rank in world in network size                  3rd


Tele–density (per hundred populations)        52.74
Telephone connection (In million)
Fixed                                                        36.95
Mobile                                                    548.32
Total                                                                                  621.28
Village Public Telephones inhabited (Out of       5,69,385
5,93,601 uncovered villages)
Foreign Direct Investment (in million)  (from April       4070
2000 till March  2010) 
Licenses issued
Basic                                                         2
CMTS           38
UAS                                                         241
Infrastructure Provider I                         219
ISP (Internet)                                           371
National Long distance        29
International Long Distance         24

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