ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Telecom Equipment Industry: Challenges and Prospects

This article deals with the major challenges faced by India's telecom equipment manufacturing sector, which lags behind telecom services. Only 35% of the total demand for telecom equipment in the country is met by domestic production. This is not favourable to long-term sustained growth of the telecom sector. The country is also far behind in R&D spending when compared to other leading countries. India needs to see an increase in R&D investment, industry-academia-government partnership, better quality doctoral education and incentives to entrepreneurs for start-ups in telecom equipment manufacturing.

Telecom Equipment Industry: world at 278.85 million as on 31 December 2007. The number of annual additions Challenges and Prospects in 2007 was three times that in 2004. Also, the t ele-density went up by nearly 170% over the same period, from 8.62% at the end of December 2004 to 23.87% Seema Sharma, Lokesh Singla at the end of December 2007 (TEMA 2007).

W ith an average annual growth rate of more than 8.5% in the last ve years, the Indian economy is among the fastest growing in the world. In 2007-08, the gross domestic product (GDP) grew by 8.7%, backed by an 11% growth in the services sector and 8.7% in the manufacturing sector. The information technology (IT) and telecom sectors made substantial contributions to the growth of the economy.

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