Telecom Companies Make Suggestions for Make in India Initiative

Published By : 30 Dec 2014 | Published By : QYRESEARCH

The Indian government is fast on the heels of promoting their new Make in India initiative, and telecom giants are willing to offer help to make it successful.

Companies including Ericsson, Nokia Networks and Huawei have all created manufacturing and export bases in India and plan to expand their current level of operations.

The companies are saying that although there has been shrinkage in the production levels in the previous few years in the telecom industry, there is still possibility of scaling up operations and investments. This can happen due to renewed growth potential while the companies enhance information coverage and become pro-business in coherence with the government’s sentiments.

The head of operations for Ericsson India, Chris Houghton, said that the optimistic reply that he is receiving from the Indian market, along with strong manufacturing competence and improved opportunities for export have only encouraged the company to expand operations.

Ericsson will soon invest US$15 million to establish its second manufacturing unit for core telecommunications items in Pune. The second plant will also be exporting to the Middle East, Sub-Saharan Africa, and Southeast Asia.

In 2012, the Indian Supreme Court announced an annulment of 122 permits that were held by nine telecoms. After that, the companies have scaled back operations or even left the Indian market, consequently causing a fall in production rates.

Nokia Networks has suggested that India should first address the issues related to installing local parts supply chains and enhance logistics, apart from creating essential services in the manufacturing sector.
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