In Short:
The Indian government is establishing telecommunication equipment manufacturing zones to attract foreign investments, according to Union Minister Jyotiraditya M Scindia. Over the past decade, India has transformed from importing mobile phones to becoming the second-largest producer, exporting devices worth Rs 1.28 lakh crore. The telecom sector is expected to experience similar growth, with a current USD 39 billion in foreign direct investment (FDI). Notably, BSNL will launch its 4G services using an indigenous stack, and Cisco has opened a manufacturing facility in Tamil Nadu, boosting jobs and innovation while enabling exports to several countries.
India’s Telecom Transformation: A New Era of Manufacturing
In a significant move poised to reshape the telecommunications landscape, the Government of India is embarking on a bold journey to establish dedicated manufacturing zones for telecom equipment across the nation. This announcement was made by Union Minister Jyotiraditya M Scindia on Friday, emphasizing the sector’s potential to attract an influx of foreign direct investment (FDI).
Milestones Achieved Under Modi’s Leadership
Reflecting on the last decade, Minister Scindia shared that under the leadership of Prime Minister Narendra Modi, India has seen remarkable achievements in mobile manufacturing, exporting mobile phones worth an impressive Rs 1.28 lakh crore. Just ten years ago, the country was primarily an importer of mobile devices, exporting a mere Rs 1,500 crore worth.
“Today, we are the second-largest producer of mobile phones globally, with a staggering 30 crore devices manufactured right here in India,” Scindia stated. He highlighted that value addition in mobile phones has surged by 20 percent due to the government’s strategic changes in FDI norms.
Forecast for Telecommunications Sector
Scindia elaborated on the promising future of the telecom sector, citing a dramatic growth in FDI—from USD 98 billion a decade ago to an astounding USD 160 billion today. “This telecom revolution is just beginning,” he asserted.
With an infusion of USD 39 billion in FDI earmarked for the telecom equipment manufacturing sector, the minister noted that India leads the world in the rapid deployment of 5G technology, achieving coverage in 98 percent of urban areas.
A Revolutionary Initiative by BSNL
Continuing his announcements, Scindia revealed that the government-led telecom giant, Bharat Sanchar Nigam Ltd (BSNL), has been tasked to roll out indigenous 4G services. “With this initiative, we proudly join the ranks of the six countries globally able to produce their own 4G telecom stack,” he conveyed.
By mid-2025, BSNL aims to complete the installation of 1 lakh towers, ensuring comprehensive 4G coverage across the nation.
Opening Doors for Cisco in India
Minister Scindia was accompanied by Tamil Nadu Minister for Industries, TRB Rajaa, at the inauguration of a new manufacturing facility established by the American tech giant, Cisco, in Sriperumbudur. The ministers later toured the cutting-edge manufacturing site.
On social media, Scindia proudly declared: “Telecom transformation, technological triumph! Inaugurating the CISCO-FLEX manufacturing facility in Sriperumbudur is a significant step towards making India a global hub for telecom manufacturing.”
Impact on Local Economy and Job Creation
This state-of-the-art facility is not just about technology; it’s a catalyst for employment generation and fostering innovation. Minister Rajaa highlighted how this establishment reinforces Tamil Nadu’s status as the advanced electronics capital of India, paving the way for high-quality job opportunities.
Moreover, Cisco’s Sriperumbudur facility will export its products to countries including Mexico, Japan, Australia, Netherlands, and the United States.
Rajaa emphasized, “Facilities like these solidify Tamil Nadu’s position as the Advanced Electronics Capital of India. Under Chief Minister M K Stalin, our government is devoted to supporting high-tech firms like Cisco and ensuring their supply chains are localized,” paving the way for a thriving micro, small, and medium enterprise (MSME) sector while generating jobs for residents.
