As Centre mulls easing norms for local telecom gear makers, GX Group flags import surge risk

Time of India

14 hours ago

New Delhi: Relaxation in value-addition norms for domestically-manufactured
telecom equipment
without proper guardrails may enhance risk of imports from non-trusted sources, a top official of
GX Group
has said.
The Department of Telecom (DoT) has started a review of local value-addition norms in telecom equipment following reports that manufacturers are facing a challenge in achieving 50-60% local content in electronic and telecom products due to limited component ecosystem in the country.
The move comes at a time when the government has rolled out a Rs 23,000-crore electronics component manufacturing scheme to enhance local value addition in domestically manufactured electronic products.
"The consideration of a review to local content norms is a welcome move, however, relaxations need to come with caution on specific components.
"Reducing value addition without utmost caution can enhance risk of increase in imports from non-trusted nations," GX Group CEO Paritosh Prajapati told PTI.
GX Group is a beneficiary under the telecom sector's production linked incentive (PLI) scheme.
The company has its manufacturing facility in Manesar and a research and development centre in Chennai.
"The security-sensitive telecom equipment segment is already being infested from imported products, which is mitigating growth of indigenous production under
telecom PLI scheme
," Prajapati said.
The DoT on June 3 invited comments on the review of the Public Procurement (Preference to
Make in India
) from industry bodies -VoICE, TEMA, ICEA, COAI and MAIT, original equipment makers --Tejas, VVDN, HFCL, Nokia, Ericsson and CISCO.
It has also invited comments from electronics manufacturing services companies Dixon, Syrma, Neolync and Jabil as well as public sector firms like BSNL and TCIL.
The DoT has given 30 days for stakeholders to submit their comments.
Prajapati said that GX Group and other industry stakeholders have been completely focused on indigenisation mandates and have built a robust local manufacturing ecosystem along with local R&D and IP rights in the past few years.
He said that given the Indian component space is still growing somewhat, relaxations of the norms may bring in some relief to the industry for specific components only to ensure that Indian players become more competitive.
"Foreign companies coming in to cater to the diverse Indian market should also invest in R&D within the country and make efforts to maximise local production of required components and sub-components," Prajapati said.
He said that there are instances wherein global players expand into the market but rely on assembling of products rather than creating products and adding value, in a way not investing in the local economy but only ready to cater to the market demand and enhance revenues.
"Relaxation in value addition norms should be accompanied with conditions like technology transfer, timeline for capacity development in India, phase-wise manufacturing programme, etc," Prajapati said.