India to Launch its First Telecom Manufacturing Hub: Scindia

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Image Courtesy: Ministry of Communications

Communications Minister Jyotiraditya Scindia announced on Friday that India may be on the verge of establishing its first dedicated telecom manufacturing zone. This statement came during a press conference held to mark the opening of Cisco‘s inaugural manufacturing facility in the country.

Scindia emphasized that the timing is ideal for India to deepen its engagement in telecom manufacturing, stating, “We are contemplating the creation of a telecom manufacturing zone.” He further highlighted the successful implementation of the production-linked incentive (PLI) scheme within the communications sector, which has created a strong foundation for this initiative.

“We have witnessed investments totaling ₹3,781 crore through the PLI scheme, involving 42 participating companies, with the potential for production reaching ₹55,000 crore and the creation of 22,000 jobs,” he noted. The minister also revealed that the Telecom Ministry is actively engaging with both domestic and international telecommunications technology companies to participate in a pioneering plug-and-play system, where the basic infrastructure would be established by the central government.

“We are in discussions with telecom giants, equipment manufacturers, and original equipment manufacturers (OEMs) to secure anchor tenants for this project,” he clarified, adding that a specific location for the proposed hub has not yet been determined.

Crucially underpinning this proposal and the potential swift establishment of the manufacturing hub are the 60 research laboratories dedicated to groundbreaking work in communications technology, according to Scindia. “Out of these 60 labs, we have already approved two: one focusing on a 6THZ bed and another on optical fiber technology. We have observed remarkable research advancements and practical use cases emerging from these initiatives,” he stated.

Furthermore, the timely launch of this initiative is supported by India’s rapid advancements in 5G and 6G connectivity, as well as the growing scale of its telecom exports. Scindia remarked, “While we lagged behind in the global race for 4G, we have aligned ourselves with the international community in 5G and are poised to take the lead in 6G technology.”

He noted that India is currently witnessing ₹25,000 crore in telecom exports, a figure he anticipates will continue to rise. Cisco’s new manufacturing facility, situated in Sriperumbudur near Chennai, will specialize in the production of NCS 540 routers for both the domestic and international markets.

Scindia expressed optimism that more global communications technology companies would choose to set up export bases in India. “As we speak, routers manufactured in India are being exported to various countries, including the Netherlands, Mexico, and Japan,” he concluded.