TRAI's recommendations drive local value addition in Indian telecom equipment manufacturing

The Telecom Regulatory Authority of India (TRAI) has unveiled a set of recommendations aimed at enhancing the manufacturing of networking and telecom equipment within the country.

These recommendations mark a shift from merely increasing domestic production to emphasizing local value addition within global value chains.

Key areas of focus in the recommendations include facilitating local value addition, particularly within cross-country value chains, giving due importance to telecom software as a distinct product line to align with the software-driven nature of modern networks, promoting exports, nurturing entrepreneurship by supporting micro, small, and medium enterprises (MSMEs) and start-ups, and fostering a robust component ecosystem in India. These measures are designed to further boost the domestic telecom equipment manufacturing sector and align it with global trends.

There are 10 detailed salient points of TRAI's recommendation on promoting networking and telecom equipment manufacturing in India. Some of them are -a production linked incentive (PLI) scheme, preferential market access (PMA), catering to financing requirements which keeping in view, various relative cost disability faced by the industry. It has been recommended that a dedicated master fund, NATEDF - Networking and Telecommunications Equipment Development fund on the lines of Electronics Development Fund (EDF) should be established. Tax relief as part of fiscal incentives, promoting entrepreneurship - startups and MSEs are some of the other important focus areas.

There is also mention of due emphasis on optimal use of resources has been given, therefore, it is recommended that Telecom Products Development Clusters (TPDCs) should be established within the approved Electronics Manufacturing Clusters (EMCs) or nearby with host of common facilities.