NITI Aayog Urges Policy Support for Telecom Equipment Sector

NITI Aayog released a report titled "Key Sectors to Position India as a Global Manufacturing Hub," identifying the telecom and network equipment (TANE) sector as a potential $50 billion export hub by 2035. The agency estimates this growth could increase the sector's GDP contribution to 1-1.5% and create 500,000 skilled jobs.

The report warns that India currently sources over 80% of critical 4G and 5G components, such as signal processors and antennas, from China. While the domestic TANE market is projected to grow from $25 billion in FY25 to $50 billion by FY32, Indian manufacturers face a fiscal disability of up to 29% compared to global peers, with localization levels often remaining below 15%.

To meet the National Telecom Policy 2025 goals of universal connectivity and $1 trillion in total exports by 2030, NITI Aayog recommends deeper localization of component manufacturing, joint ventures with global original equipment manufacturers for technology transfer, and the establishment of industrial clusters. The agency notes that while Production Linked Incentive programs have bolstered manufacturing, the $50 billion export target requires a more reliable domestic supplier ecosystem and a predictable policy environment for research and development.

Beyond telecom, the report identifies chemicals, textiles, and solar PV as critical engines for growth. It specifically highlights the need to reduce near-total import dependence on polysilicon for solar PV manufacturing to build an integrated domestic supply chain.