Press Information Bureau

Government of India

Ministry of Communications & Information Technology

07-December-2012 16:08 IST

The National Telecom Policy-2012 (NTP-2012), inter-alia, has following objectives on promoting telecom equipment manufacturing:

(i) Promote innovation, indigenous R&D and manufacturing to serve domestic and global markets, by increasing skills and competencies.

(ii) Create a corpus to promote indigenous R&D, IPR creation, entrepreneurship, manufacturing, commercialisation and deployment of state-of-the-art telecom products and services during the 12th five year plan period.

(iii) Promote the ecosystem for design, Research and Development, IPR creation, testing, standardization and manufacturing i.e. complete value chain for domestic production of telecommunication equipment to meet Indian telecom sector demand to the extent of 60% and 80% with a minimum value addition of 45% and 65% by the year 2017 and 2020 respectively.

(iv) Provide preference to domestically manufactured telecommunication products, in procurement of those telecommunication products which have security implications for the country and in Government procurement for its own use, consistent with our World Trade Organization (WTO) commitments.

(v) Develop and establish standards to meet national requirements, generate IPRs, and participate in international standardization bodies to contribute in formulation of global standards.

With a view to increasing share of domestically manufactured electronic products which includes telecom equipment also, the Government, vide Notification No. 8(78)/2010-IPHW dated 10th February 2012, has laid down the policy for providing preference to domestically manufactured electronic products (including telecom equipment) in procurement. Department of Telecommunications has notified telecom products to be procured by all the Ministries or Departments (except the Ministry of Defence) of Government and the agencies under their administrative control and for all Government funded telecom projects (e.g. NFS and projects funded by USOF like NOFN etc.) vide notification No. 18-07/2012-IP dated 5th October 2012.

This information was given by Shri Milind Deora, Minister of State for C&IT in written reply to a question in Rajya Sabha today.

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MV/RK

Preference for domestically manufactured telecom equipment in government procurement and security purchases to strengthen local industry. The National Telecom Policy-2012 promotes indigenous telecom manufacturing by supporting R&D, IPR creation and industry development, setting national production and value addition targets, and directing preference for domestically manufactured telecommunication products in government procurement-particularly for items with security implications. Government notifications implement procurement preference for domestically manufactured electronic and telecom products across Ministries and government funded telecom projects (excluding defence) and call for standards development and participation in international standardisation.