- TRAI had earlier suggested that India should aim for zero telecom equipment imports by 2022
- Telecom equipment worth $21,847.92 million were imported in India during 2017-18
A report by Axis Capital points towards a possible hike in prices of telecom equipment imported to India. The report has cited depreciating value of Indian Rupee as the reason behind the same. It is also to be noted here that several African currencies are also experiencing depreciation in value against the US dollar currently.
“Depreciation in INR/African currencies versus USD may increase cost of imported telecom equipment (including Bharti), pushing up their capex. Stronger USD may also lead to translation losses from USD-denominated debt,” the report published by Axis Capitals’ telecom sector read.
Zero telecom equipment imports by 2022
The Telecom Regularity Authority of India (TRAI), back in 2018, suggested that India should aim for zero imports of telecom equipment by 2022. It also requested Telecom Equipment Manufacturing Council (TEMC) to identify and recommend priorities.
“India should aim to achieve the objective of net zero imports of telecommunication equipment by 2022. For this purpose, Telecom Equipment Manufacturing Council (TEMC), should identify and recommend specific areas of priorities,” TRAI had said in 2018.
Imports massively bigger than exports
The amount spent on importing telecom equipment by India is a lot bigger than what the country exports in terms of the same. The export of telecom instruments valued at around $1,201.7 million in 2017-18 while imports, during the same time, totalled approximately $21,847.92 million.