The Prime Minister, Dr Manmohan Singh, on Wednesday said that large imports of telecom equipment is a matter of concern in the light of India's strategic and security interests.
Speaking at the inauguration of India Telecom 2011 in New Delhi, Dr Singh said, "While telecommunication networks could be set up with imported equipment, it becomes a concern when a large telecom network in a country like ours requires continuous large imports. Keeping in view the growth potential for the manufacture of telecom equipment in our country and our strategic and security interests, there is an urgent need to give impetus to domestic research and development and manufacturing in the telecom sector."
"A thriving telecom manufacturing industry would have a large positive impact on many other elements of the electronics manufacturing value chain, apart from generating other benefits like additional employment," he said.
The Prime Minister said the Government is committed to doing all it can to ensure successes in the future of telecom sector. "We will work closely with all stakeholders to build upon what we have achieved. I would like to take this opportunity to assure all of you that our government will continue to formulate forward looking policies that will encourage further growth of the telecom sector."
He said that it was the endeavour of the Government to provide broadband connectivity to all village panchayats in the country. Towards achieving this objective, over the next 2 years, the Government has recently approved a scheme for creation of a National Optical Fibre Network (NOFN). "The cost of the initial phase of this scheme is estimated at Rs 20,000 crore. An equal amount is also envisaged to be invested by the private sector to complement the National Optical Fibre Network infrastructure by providing access services to the individual users. The scheme is expected to generate a variety of benefits to our rural people like better access to education, better access to health and provision for agricultural services," Dr Singh said.
Reassures industry
On the industry's concern around the new telecom policy the Prime Minister said, "I am aware of some concerns of the telecom industry regarding government policies in the telecom sector. I wish to reassure industry of the Government's full commitment to sustaining growth, creativity and enterprise in this vitally important sector of our economy."