Telecom Manufacturing Investment Set to Reach Rs 4,000 Crore
The telecom sector, historically considered the backbone of the digital revolution, is undergoing a monumental transformation.
As we step into the next era of telecommunications with the proliferation of 5G and IoT technologies, the global focus is shifting to indigenous manufacturing and reducing dependencies on imports.
In India, one of the most significant developments is the burgeoning investment in telecom manufacturing, which is poised to reach Rs 4,000 crore in the near future.
The government’s proactive approach, which includes policies like “Make in India” and Production Linked Incentive (PLI) schemes, has created an environment conducive for domestic and international players to set up manufacturing bases in India.
The country’s investments in telecom manufacturing will reach Rs 4,000 crore over the next few years, according to communications minister Ashwini Vaishnaw, who said this on Tuesday that India is becoming a reliable value chain partner and that many businesses are interested in both designing and manufacturing in the nation.
Vaishnaw announced the opening of a production line for VVDN Technologies to produce 4G and 5G connectivity modules and data cards. “Within the next few years, we will see close to Rs 4,000 crore total investment, which is double of what has already happened, 44,000 employment, and Rs 2.37 trillion total sales revenue,” Vaishnaw said.
On the strength of the government’s production-linked incentive programme for the telecom sector, of which 42 enterprises are beneficiaries, an increase in investment and sales is anticipated. As of August 31, the corporations had invested a combined Rs 2,419 crore in the government, with a Rs 34,516 crore in revenues. Approximately 17,753 individuals have been employed by the firms, based on official statistics.
Vaishnaw stated that “very complex manufacturing has started, and young girls are receiving training in handling complex machines” while referring to the VVDN production line. This demonstrates Make in India’s success.
One of the PLI scheme’s beneficiaries is VVDN. Hewlett Packard Enterprise, located in the US, and VVDN inked a first agreement in July of this year under which they want to create high-end servers worth $1 billion over the course of four to five years.
Vaishnaw further mentioned that within a year of the services’ introduction, India would have the third-largest global 5G ecosystem.
With over a billion mobile subscribers and the continuous drive towards digitization, the demand for telecom equipment in India is escalating.
The ongoing geopolitical scenarios have prompted nations and corporations to diversify their supply chains, making India an attractive manufacturing hub.
India’s vast pool of skilled labor available at competitive costs provides a strategic advantage for manufacturing.
This surge in investment will significantly contribute to GDP growth, fostering economic stability and resilience against global economic shocks. As companies set up manufacturing plants, thousands of direct and indirect job opportunities are expected to be created, thus aiding in reducing unemployment rates.
While investments are pouring in, there’s an urgent need to develop robust infrastructure, including reliable power supplies and efficient transportation systems.
Though India has a large workforce, there’s a necessity for specialized training programs to equip them with skills specific to telecom manufacturing. With the rapid expansion of manufacturing units, there’s a growing concern regarding the environmental impact. Green manufacturing practices need to be prioritized.
For sustainable growth, India needs to invest in research and development to bring innovations in telecom manufacturing With the right policies and incentives, India can attract more global giants to set up their manufacturing bases in the country.
As the quality and scale of production increase, there’s a vast potential for India to become a significant exporter of telecom equipment.
The anticipated Rs 4,000 crore investment in telecom manufacturing marks not just the transformation of the telecom sector but also the changing dynamics of India’s industrial landscape.
By leveraging its strengths and addressing challenges head-on, India stands at the cusp of establishing itself as a global hub for telecom manufacturing. The ripple effects of this development will undeniably be felt across the economic, social, and technological domains of the country.
