'The Telecom Equipment Manufacturers’ Association (TEMA) of India in a communication to the Prime Minister Manmohan Singh has taken strong exception to US India Business Council’s stand on preferential market. 

Council's stand elaborated in a letter to the prime minister is regarding the recent Cabinet approval relating to “Preferential Market Access” for domestically manufactured goods in Government purchases for electronic and telecom equipment and for areas which can pose a threat to the security of the nation.

Tema said that the letter which was shared with the world media is an attempt to generate an opinion against a sound decision of the UPA Government. 

“The letter is a deliberate attempt to denigrate the domestic lobby”, a statement from TEMA said.

“Such deliberate attempts will create pressures on the Government of India which will result into adverse implications in strategic areas and make us lose the last opportunity to make our telecom network  (which is part of the critical infrastructure of India) secure, robust and reliable”, said Ashok K. Aggarwal, Honorary Director General, Telecom Equipment Manufacturers Association (TEMA). Aggarwal further  said that the US India Business Council stand is a clear reflection of the double standards adopted by US/Asian Trade Associations.  

The TEMA communications to the Prime Minister of India also referred to U S President Barak Obama’s State of the Union Address on January 24, 2012 which emphasized that ‘Manufacturing is the key factor to economic stability’ and needed a boost.

“The Indian Government is following the similar line. We don’t understand why the Washington based Association is crying hoarse over it. As a matter of fact the US President has suggested for bigger tax cut for Amercian manufacturers and even bigger tax cuts if the American company is a high-tech manufacturer. If a democratic country like USA can make such bold statements, why should we not stand up and take care of our state of affairs?” said Aggarwal.

According to TEMA’s communication, with the implementation of preferential market access guidelines, Foreign Direct Investment (FDI) will increase as all Telecom Equipment Manufacturing giants will invigorate their manufacturing activities and ramp up their manufacturing activities in India. “Some of the multinational telecom equipment manufacturing companies have already announced huge investment plans in Telecom Equipment Manufacturing sector ever since the Preferential Market Access Policy was announced,” added Aggarwal.