The Indian Telecom Equipment Manufacturers Association in a communication to the Indian Prime Minister Manmohan Singh and Telecom Minister Kapil Sibal cited the recent State of the Union Address by U.S. President Barack Obama in which he pointed out the importance of creating a strong manufacturing base within America so as to beat the economic downturn by creating more jobs and prosperity in the United States.
According to the communication, TEMA cited President Obama’s comment: “If you’re an American manufacturer, you should get a bigger tax cut. If you’re a high-tech manufacturer, we should double the tax deduction you get for making products here.”
“TEMA as an association has been communicating to the GoI about the need for a strong telecom equipment manufacturing base in the interest of our country not only from the economic point of view, but from national security point of view also. It is an irony that what we have been wanting our government to implement the Americans have spelled out and we are sure they will implement much before us. It is a kind of wakeup call for us,” TEMA’s Honorary Director General Ashok K. Aggarwal said.
President Obama’s statement has provided ample clues as to what India needs to do to revitalize the economy, create jobs in the country and generate wealth. The foremost action seems to be to place greater emphasis on the manufacturing sector, TEMA stated.
TEMA, in its earlier communications to the Prime Minister’s office, has been sharing the same school of thought and similar sentiments on this dire need for the country to promote and boost the indigenous manufacturing sector, especially telecom, which has a tremendous potential.
The telecom equipment manufacturing sector has somehow missed the bus on the telecom revolution in the country, TEMA stated in the letter.
“We feel that it is time for the GoI to initiate tough measures so as to bring the manufacturing sector to a level wherein we become self-reliant and a telecom equipment exporting nation with a special focus on promoting telecom equipments designed, developed and manufactured in India,” Aggarwal added.
The manufacturing sector is one of India’s largest, which once revived could contribute significantly to the creation of jobs in the country. It has the potential to not only save foreign exchange, but could help to earn foreign exchange through export of telecom equipment to other nations and make India more self-reliant, TEMA stated.
The association is of the view that the growth of the telecom manufacturing sector would provide impetus to the growth of the electronics and component manufacturing industry, which would provide vital inputs to the telecom manufacturing industry.