Need strong domestic production base in electronics, telecom to avoid huge import bills: PM

By 2020, India is estimated to import electronic products worth about $300 bn

Prime Minister Manmohan Singh, on Thursday, said a strong domestic manufacturing base in electronics and telecommunications is needed to mitigate burden of growing imports for the sector.

 

“India needs to develop a strong domestic manufacturing base in electronics and telecommunications,” Singh said in his inaugural address at India Telecom 2013, which was organised by Department of Telecommunications and industry body Ficci.

 

By 2020, the Prime Minister said, India is estimated to import electronics products worth about $300 billion, more than the value of the country’s imports of petroleum products.

 

“We need to act now to avoid a situation where we face difficulties in financing these huge imports. India should have manufacturing facilities which result in a balanced trade in electronics products and are a part of global supply chains,” Singh said.

 

The Prime Minister also said that the Department of Telecommunications has already started issuing Unified Licenses and will also shortly issue the Merger and Acquisition guidelines. The Empowered Group of Ministers, headed by Finance Minister P Chidambaram, had finalised the M&A policy for the telecom sector earlier this week, which will be finally cleared by the Union Cabinet. 

 

“Combining a computer with 3G connectivity can revolutionise the delivery of education. Students can learn the subject of their choice from quality teachers without leaving the place of their residence. I am told that the Telecom Commission is working on such possibilities and I wish them all success in this noble endeavour,” said the Prime Minister.

 

Singh also said that the Government is working on the objective of increasing teledonsity in the rural areas to about 70% by 2017 and 100% by 2020, as part of the National Telecom Policy 2012. “The policy also recognises telecom and broadband connectivity as a basic necessity and aims to provide reliable and affordable broadband access to rural areas,” he added. The Government is already working on a plan to extend financial support for the Universal Service Obligation Fund (USFO) for providing mobile communication services in 56,000 uncovered villages across India.