DoT urges vendors to get global suppliers to set up plant in India. The telecom department has asked network vendors to convince their global component suppliers to set up manufacturing lines in India, according to people familiar with the matter, a move that can help them comply with norms on local value addition. As per new rules, network gear makers must meet 45% and 65% of their local value addition targets by 2017 and 2020, respectively. Local value addition (VA) is the degree of customization for Indian markets that will go into an imported telecom product using Indian resources. According to a senior executive of a network vendor, there was near unanimity at a recent meeting of the Telecom Equipment Manufacturing Council that the government and the telecom industry needed to work together to maximise foreign direct investment ( FDI) in the telecom components space. "There was an emerging view that overseas telecom companies are unlikely to do direct technology transfers or design actual telecom products in India," the executive, who was present at the meeting, said. The meeting was chaired by department of telecom (DoT) advisor RK Bhatnagar.
Posted on: Wed, 12 Jun 2013 04:38:06 +0000
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