"Government to Establish Telecom Equipment Manufacturing Zone"

Union Communications Minister Jyotiraditya M. Scindia announced on Friday that the Indian government plans to set up a telecommunications equipment manufacturing zone to boost the sector and attract foreign direct investment (FDI). Speaking to the media after inaugurating Cisco's manufacturing plant in collaboration with Flex at Sunguwarchatiram, about 50 km west of Chennai, he emphasized the importance of deepening India’s involvement in telecom equipment production.

“We are in discussions with telecom companies to establish a manufacturing zone that operates as a plug-and-play system, with all basic infrastructure set up by the Government of India,” Scindia stated. He noted that discussions with both domestic and international players are still in the early stages, urging them to strengthen their ecosystems in India.

When questioned about the location for the new zone, Scindia explained that they are in the process of consulting with interested telecom equipment companies to identify potential anchor tenants before finalizing a site. “There are two or three options that we’re considering,” he added.

The minister highlighted the success of the Production Linked Incentive (PLI) scheme, which has seen 42 companies participate, leading to nearly ₹55,000 crore in production, around ₹11,500 crore in exports, and the creation of close to 22,000 jobs with an investment of ₹3,781 crore. “The greatest potential today is in India. Our telecom equipment manufacturers are gearing up for this opportunity. In the last 19 months, we produced our own 4G stack, making India the sixth country in the world to achieve this milestone,” he noted.

Scindia also visited the 5G Testbed at IIT Madras, where researchers are working on indigenous 5G systems and developing future 6G technology. The Testbed supports R&D, product development, and capacity-building activities for various stakeholders, including industry, academia, and start-ups.

“Initiatives like the indigenous 5G Testbed Project at IIT Madras showcase India’s growing innovation capabilities and are essential for our goal of becoming the third-largest economy in the world,” Scindia remarked. He emphasized that fostering indigenous technology manufacturing is crucial for driving economic growth, creating job opportunities, and enhancing India’s global standing in critical sectors like telecommunications.

V. Kamakoti, Director of IIT Madras, reiterated the commitment of higher education institutions to contribute to India’s vision of a developed nation by 2047, with the 5G project serving as a significant example of their efforts.

HBL