Lok Sabha Question No. 3429 (UNSTARRED), answered on 2017-03-22
Subject: Indigenization of Telecom Equipment
Ministry: COMMUNICATIONS
Asked by: ANANDRAO  ADSUL

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO.3429 TO BE ANSWERED ON 22 ND   MARCH, 2017

## INDIGENIZATION OF TELECOM EQUIPMENT

3429. SHRI ANANDRAO ADSUL:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether Information and Communication Technology (ICT) sector has been a major contributor to economic growth registered across the world including India;
- (b) if so, the details thereof including the share of the said sector in the growth registered during the last three years;
- (c) whether  the  Government  has  set  up  Telecom  Equipment  and  Service  Export Promotion Council (TEPC) to initiate the conceptualization of Information Super-Highway in the country;
- (d) if so, the details thereof and the other steps taken by the Government in this regard; and
- (e) whether  the  Government  proposes  to  take  steps  to  indigenize  the  research  and development  of  telecom  equipments  and  if  so,  the  details  thereof  including  the  other measures taken so far by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a) It is widely believed that the Information and Communication Technology (ICT) sector plays a major role in the economic growth in various countries, although the estimates of the impact  of  the  ICT  sector  in  growth  have  varied  in  reports/papers  brought  out  by  different researchers and organizations.

As  per  an  article  entitled  'The  Impact  of  ICT  on  the  Global  Economy',  published  on 22.12.2015,  ICTs  have  contributed  upto  one  quarter  of  GDP  growth  in  most  developed countries during the first decade of 21 st Century. The article is available at http://www.enterpriseinnovation.net/article/impact-ict-global-economy-1388124773

(b) In India, the share of ICT/communication sector in GDP is not specifically calculated by  Central  Statistical  Organisation  (CSO).    This  sector  is  included  within  the  broad  group, 'Trade,  Hotels,  Transport,  Communications  and  Services  relating  to  Broadcasting' . The share of this sector/group in the GDP for the years 2014-15, 2015-16 and 2016-17 is given below:

## Share  of  services  sector  including  communications  in  GDP  (Gross  Value  Added  at 2011-12 prices)

| Sector                                                                         | Share in GDP                     | Share in GDP                   | Share in GDP                      |
|--------------------------------------------------------------------------------|----------------------------------|--------------------------------|-----------------------------------|
|                                                                                | 2014-15 (First Revised Estimate) | 2015-16 (Provisional Estimate) | 2016-17 (First Advanced Estimate) |
| Trade, Hotels, Transport, Communications and Services relating to Broadcasting | 18.85%                           | 19.16%                         | 18.98%                            |

Source: Ministry of Statistics &Programme Implementation

(c) Telecom Equipment and Services Export Promotion Council (TEPC) has been set up by the Government to promote and develop exports of telecom equipment and services.

(d) TEPC  undertakes  activities  aimed  at  export  promotion  such  as  commissioning  of studies  to  find  potential  markets,  holding  of  National/International  seminars  and  facilitating participation of exporters in various domestic and overseas exhibitions.

(e) The steps taken by the Government to indigenize the research and development of telecom equipments are as under:

- i) Department  of  Telecommunications  along  with  industry  and  academic  institutions have established eight Telecom Centers of Excellence (TCOEs) under Public Private Partnership (PPP) at premier academic institutes of the country with the objective of creating  an  ecosystem for a sustained, high rate of growth of telecom sector in the country.  TCOEs  are  created  for  promoting  development  of  new  technologies,  to generate IPRs, incubate innovations and promote entrepreneurship to position India as a global leader in telecom innovation and making India a hub of telecom equipment manufacturing.  So  far,  TCOEs  have  produced  80  technologies  out  of  which  4 technologies have been commercialized.
2. ii)  Telecommunications Standards Development Society, India (TSDSI), has been set up and  has  been  recognized  by  DoT  as  India's  Telecom  Standards  Development Organization. TSDSI aims at developing and promoting India specific requirements, standardizing  solutions  for  meeting  these  requirements  and  contributing  these  to international standards, contributing to global standardization in the field of telecommunications, maintaining the technical standards and other deliverables of the organization, safeguarding the related IPR, etc.
3. iii) With a view to encourage domestic manufacturing of telecom equipments, Government has notified the Preferential Market Access (PMA) policy under which 23 telecom products have been notified for Government procurement.

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