Niti Aayog flags China import reliance in telecom sector

India's telecom and network equipment (TANE) sector could raise its GDP contribution and become a $50 billion export hub by 2035, but heavy import dependence on China remains a key hurdle, a Niti Aayog report says. Exports of TANE equipment were just $0.6-1 billion annually between 2020 and 2024, while imports stood at $4-5 billion a year, the report notes. Over 80% of critical components such as 4G/5G antennas and signal processors are sourced from China, it adds.

The Hindu Businessline reports that Indian manufacturers face up to 26% higher fiscal disability than global peers in high-value-added telecom manufacturing. The Times of India adds that the disability rises to 29% where buyer's credit is available against extended imports. Domestic value addition is often below 20%, with production concentrated in low-value assembly, both sources say.

The government has introduced the Production Linked Incentive (PLI) scheme to support the sector. The report says continued supportive measures could raise TANE's GDP contribution to 1-1.5%, create 5 lakh skilled jobs, and help meet National Telecom Policy 2025 targets of a 150% output surge and 50% import substitution by 2030.