Consultation Paper on Promoting Networking & Telecom Equipment Manufacturing in India

Consultation Paper on Promoting Networking & Telecom Equipment Manufacturing in India

Recently, TRAI has issued a consultation paper on Promotion of Networking and Telecommunication Equipment Manufacturing (NATEM) in India.

The Telecom Regulatory Authority of India (TRAI) has issued a consultation paper to promote manufacturing of network equipment in the country. In this, measures have been suggested to overcome the shortcomings in the Telecom Equipment Production Linked Incentive (PLI) scheme.

In the year 2021, the government had launched the PLI scheme for telecom and networking products.

It has the following objectives:

  • Promote home networking and telecommunications equipment (NATEM) manufacturing by encouraging investment and increased turnover.
  • Reducing excessive import of telecommunication equipment, and instead using products made in India.

Drawbacks in PLI Scheme:

  • There is lack of availability of funds for startups in the hardware sector.
  • Local manufacturing is being severely affected due to lack of safeguards against cheap imports.
  • There is a lack of monitoring and facility for manufacturing telecommunication equipment.
  • There is lack of market access for indigenous manufacturers.
  • Rapid changes are taking place in technology.
  • Financing options are not available to indigenous manufacturers.

Suggestions given in the consultation paper

  • Telecom Entrepreneurship Promotion Fund and Telecom Manufacturing Promotion Fund should be set up.
  • India’s contribution to global value chains should be increased.
  • State of the art technology manufacturing center should be established.
  • Infrastructure like technology parks should be created to facilitate manufacturing.
  • Issues related to availability and pricing of electricity to be resolved

Measures taken by the Government to promote Networking and Telecommunication Equipment Manufacturing (NATEM) in the country:

  • Several PLI schemes have been launched to achieve the goal of electronic manufacturing worth $300 billion by the year 2026.
  • It is important to leverage the transformative power of digital communication networks to achieve digital empowerment. For this, the National Digital Communication Policy, 2018 has been announced.
  • National Software Product Policy, 2019 has been announced. Its objective is to promote the creation of a sustainable Indian software products industry driven by intellectual property.
  • In the year 2021, the DoT had amended the licensing system for procurement of networking and telecom equipment from trusted sources. This will ensure the security of the telecom network.
  • Incubation centers have been set up. These will help in the establishment and growth of new businesses and budding companies.

Source – The Hindu

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