GX Group bats for scheme to manufacture telecom equipment indigenously

GX Group CEO Paritosh Prajapati said that it's time for the government to give a boost to electronic components as well to enhance value addition in the telecom gears

The government should introduce phase manufacturing program for telecom equipment to boost local ecosystem and enhance value addition in indigenously made products, a senior official of GX Group said.

GX Group CEO Paritosh Prajapati told PTI that it's time for the government to give a boost to electronic components as well to enhance value addition in the telecom gears which are a critical element from the national security perspective as well.

"To have a complete homegrown ecosystem of telecom and IT equipment, the government should look at a phased manufacturing programme (PMP) for these equipment.

"Along with developing domestic manufacturing, PMP will also ensure that there is no hindrance in the overall supply chain resulting in smooth deployment of the digital infrastructure," Prajapati said.

GX Group is one of the beneficiaries of the telecom production-linked incentive (PLI) scheme.

Telecom production in the country crossed Rs 70,000 crore in November. Out of the total production, equipment of over Rs 13,500 crore are exported under the PLI scheme.

PMP has been earlier implemented for promotion of mobile manufacturing in the country and to enhance local value addition.

Under the PMP, the government identifies a specific set of components that can be given special impetus to meet industry requirements and also provide long term policy assurance to investors in the segment.

Prajapati said that there is a need for policies now that promote global competitiveness of Indian-made products and to scale exports to push India towards global leadership in technology.

Talking about budget expectation, Prajapati said with the government's focus on 'Make In India', he expects the upcoming budget to focus on sustainability, technology, and support for building the ecosystem of all-round manufacturing, research and development in the telecom and IT and digitisation space.

"Electronic components is a growing space with India having immense potential in this sector. The budget should also look at ways to develop new manufacturing clusters, electronic components and other incentives for domestic production.

"For India to be a global frontrunner in these times of Artificial Intelligence, a dedicated focus on these equipment and research and development for products and technologies are key areas to focus on with a long term view," he said.