Telecom Sector-Draining out of astronomical amount of resources from India to foreign telecom equipment manufacturers
In the year 2009-10, the cost of the telecom equipment utilised for expanding the telecom network was Rs 93600 crores. In this, equipment costing Rs 44800 crores was imported and equipment costing Rs 48800 crores was manufactured in India. But this equipment manufactured in India is not of the category Indian Product(where the intellectual property right acquired for the research and development and the designing and manufacture all were done by Indian Companies), but only Indian manufacture Products”- (which means only assembling and soldering of the parts imported from other countries was done in India), as per the report of the PWC(Price Water Coopers-a US consultancy firm). As per this study of the PWC the value addition in this Indian manufacture is only 11%. This means out of the Rs 48800 crore worth equipment manufactured in India, the value added in India is only Rs 5368 crores. Thus out of the Rs 93600 crores worth telecom equipment utilised by the Indian telecom services sector in 2008-09, the value created in India is only Rs 5368 crores and the remaining Rs 88232 crores belonged to foreign companies. This means in one year a huge amount of Rs 88232 crores was paid by India to foreign telecom equipment manufacturing companies. It can be safely presumed that after the starting of mobile telecom services in India, atleast 5 lakh crores of rupees was paid to foreign companies for buying telecom equipment, indicating an astronomical amount of the draining of our resources to foreign countries.
Therefore how to see that this drainage of resources is stopped and the telecom equipment is produced indigenously and the dependence on foreign manufacturers is stopped.