Lok Sabha Question No. 3305 (UNSTARRED), answered on 2023-08-09
Subject: Size of the Optical Fiber Industry
Ministry: COMMUNICATIONS
Asked by: Jagdambika Pal

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO. 3305 TO BE ANSWERED ON 9 TH  AUGUST, 2023

## SIZE OF THE OPTICAL FIBER INDUSTRY

## 3305.   SHRI JAGDAMBIKA PAL:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) the present size of the Optical Fiber Industry market in the country including its Compound Annual Growth Rate (CAGR);
- (b) whether Domestic and Foreign Investments have been made during the last decade and if so, the details thereof;
- (c) whether the Government has implemented or proposed any initiatives to invest in Research and  Development  (R&D)  and  domestic  high-tech  manufacturing  specifically  related  to  Digital Connectivity and if so, the details thereof; and
- (d) the details of the goals, objectives along with the recent accomplishments of the BharatNet Yojana?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS (SHRI DEVUSINH CHAUHAN)

- (a) As per the information received from industry associations, the present capacity of Optical fiber industry in India is 100 million Fiber Km with a market size of approximately Rs 7,000 crore (Year 2019) and the Compounded Annual Growth Rate (CAGR) is 6-8%.
- (b) Domestic investments in optical fiber industry is approximately Rs 5,000 crores while foreign investment is approximately Rs 600 Crore in last 10 years.
- (c) The Government has taken several steps for Research and Development (R&D) and domestic high-tech manufacturing specifically related to Digital Connectivity:
- (i) Production Linked Incentive (PLI) Scheme was launched on 24.02.2021 to promote domestic manufacturing of specified telecom and networking products including 4G, 5G products and design-led manufacturing in the country. Total 42 Beneficiaries have been approved under the scheme.  As on 30.06.2023, cumulative investment is Rs 2231 crore  and  sales  is  Rs  28725  crore  out  of  which  exports  is  Rs  7,165  crore  and employment generation of 16410.
- (ii) Telecom Technology Development Fund (TTDF) has been launched from 01.10.2022 under  which  5%  of  annual  collections  under  Universal  Service  Obligation  Fund (USOF)  is  allocated  for  promotion  of  Research  and  Development  (R&D)  and commercialization of technologies

- (iii) Digital  Communications  Innovation  Square  (DCIS)  was  launched  to  promote  and support  translation  of  innovative  ideas  and  knowledge  by  Start-ups/MSMEs  in engineering derived from fundamental or applied research into pilot scale operation, field  deployment  or  viable  technology  development  (product  or  process)  within  a definite time frame. The beneficiaries are working in technologies such as backhaul radio  and  communication technologies, Long Term Evolution (LTE) Advanced, 5G and future generation access technologies etc.

(d) BharatNet  project  is  being  implemented  in  a  phased  manner  to  provide  broadband connectivity to all the Gram Panchayats (GPs) in the country. As on 30-06-2023, a total of 6,43,450 Kms Optical Fiber Cable (OFC) has been laid and 1,94,909 Gram Panchayats (GPs) are Service Ready. The scope and strategy of BharatNet project has been revised with an outlay of Rs 1.39 lakh crore and scope to cover all inhabited villages.

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