Abstract: Indian telecom services industry has been witnessing
a stupendous growth since 1990s. Over the years, subscriber base has
grown steadily and it crossed 950 million marks in March 2012.
India with second largest subscriber base also offers one of the
lowest call tariffs in the world. But in the euphoria of high growth in
services, the equipment manufacturing received least priority. India
mainly depends on imported components from China. Of late, it is
realized that lack of domestic manufacturing may pose a serious
challenge to India-s continued success in the telecom sector.
Therefore, the National Telecom Policy 2012 aims at developing a
strong equipment manufacturing base within India. This paper
realistically assesses India-s true potential in equipment
manufacturing and seeks to identify the emerging issues and
challenges before the Indian telecom equipment manufacturing sector
while it tries to make a transition from an import-dependent industry
to a global manufacturing hub.