The Department of Telecommunication (DoT) is working closely with the Telecom Equipment Manufacturing Council (TEMC) to develop an incentive package to attract foreign direct investment (FDI) worth $141 billion in the telecom sector. Over 50 per cent of the total investment expected in the telecom sector is proposed in the products manufacturing space.
DoT?s move follows an internal Planning Commission estimate that of the projected investment of $152 billion in the telecom sector during the 12th Plan (2012 to 2017), a majority of the investment will have to come from private telecom operators.
Over the next month, DoT will hold extensive discussions with TEMC on ways to minimise India?s manufacturing cost discrepancy vis-a-vis China, encourage global vendors to transfer technology to Indian suppliers, develop a dynamic components ecosystem and encourage local value addition to telecom products manufactured within the country.
