Telecom equipment industry to cross Rs 50-k cr by fiscal-end

Corporate Bureau
Posted: Friday, Nov 21, 2008 at 2230 hrs IST
Updated: Friday, Nov 21, 2008 at 2230 hrs IST

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New Delhi, Nov 20 : The telecom equipment manufacturing in the country is expected to cross Rs 50,000 crore by the end of this fiscal, according to figures released by the Telecom Equipment Manufacturers of India (Tema) on Thursday.

The telecom manufacturing industry has been recording growth rates of over 100% in the last two years. However, this year it is expected to come down to around 50%, mainly on account of a higher base.

The highest increase has been recoded in the wireless equipment manufacturing, including cellular mobile phones where the production has gone up from Rs 10,545 crore in 2006-07 to Rs 28,600 crore, recording a 171% growth.

However, this year the expected production from the wireless equipment market including cellular phones is estimated to be Rs 41,650 crore registering a growth figure of 46%.

The performance on the wireline equipment production however isn’t very encouraging due to reduced demand from operators. The wireline equipment production has gone down from Rs 13,100 crore to 11,780 crore and is further expected to fall down to Rs 9,450 crore this fiscal year. While, fibre cable growth has been encouraging, it increased from Rs 446 crore in 2006-07 to Rs 534 crore in 2007-8 and is further expected to increase to Rs 609 crore in 2008-9. Speaking on the cable industry, Tema vice president Rahul Sharma said, “the cable industry is passing through a difficult phase with complete slump in demand for the jelly filled telephone cables and Tema has urged the government to announce a special package of incentives to boost the wire line industry.

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