10.6. Manufacturing of Telecom Equipment

With the advent of next-generation technologies and operators rolling out 4G, 3G and broadband wireless access services, the demand for telecom equipment has increased rapidly. In an attempt to capitalize on this opportunity, the government and policy makers are focusing on developing the domestic manufacturing industry. Promotion of Telecom Equipment Manufacturing has also been included in the objectives of NTP-2012.

With a view to increase share of domestically manufactured electronic products which includes telecom equipment also, the Government has laid down the policy for providing preference to domestically manufactured electronic products (including telecom equipment) in procurement.

The Department of Telecommunications has accordingly notified telecom products to be procured by all the Ministries or Departments (except the Ministry of Defence) of Government and the agencies under their administrative control and for all Government funded telecom projects.

The Central Government’s several initiatives to promote manufacturing in the country, such as ‘Make in India’ campaign appears to have had a positive impact on mobile handsets manufacturing in the country. Companies like Samsung, Micromax and Spice had been

assembling handsets in the country already. Xiaomi and Motorola, along with Lenovo have also started assembly of smartphones in India. Firms like HTC, Asus and Gionee too have shown interest in setting up a manufacturing base in the country.