Reacting to a study done by Booz & Co, the Telecom Equipment Manufacturer's Association (TEMA) of India has said that the report is an attempt to polarize and paralyze the efforts of government of India to incentivise the local innovation and manufacturing.
The Booz & Co report said that India will account for only three percent of the global market by 2020, therefore self-reliance is not a viable tool to drive the globally competitive economies of scale.
In a communication to the Minister of Communication and IT Kapil Sibal, TEMA said that the study done by Booz & Co was sponsored by the Cellular Operators Association of India (COAI).
“Contrary to the Government of India's thought process, the report seems to conclude that there is not much scope for the Indian telecom equipment manufactures in the current world scenario”, it said.
TEMA said the telecom equipment market is expected to grow to US$40 billion by the year 2020, up from current level of US$ 10 billion, is in itself is attractive proposition for the current foreign equipment suppliers to discourage home grown telecom equipment manufacturers.
"The report of Booz & Co is based on surmise and conjecture completely ignoring the growth potential of the domestic manufacturing in India, to which Government of India is committed. This report in a way takes this great country back to the post industrial revolution and British Raj in India, wherein local industry was systematically eroded in order to promote the British Industries. During that time, few Indian businesses supported export of indigo and cotton and import of cloths spun by factories in Lancashire and import salt from UK", said Ashok K. Aggarwal, Honorary Director General, Telecom Equipment Manufacturers Association (TEMA).
The TEMA communication further suggested that the Government of India should not take into consideration the Booz & Co Report as it is against the national interest.
"The Government should not act at the behest of the foreign equipment manufacturers who are trying to ensure that domestic manufacturing does not take place in this country and we, as a nation, always remain dependent on the virtual cartel of a handful of foreign suppliers in the field of telecommunication which is highly sensitive to fiscal/physical security, strategic and forms part of critical infrastructure of the nation, "added Aggarwal.