Manufacturing & Innovation To Boost Investment - Rimit Singh

A recent report by the Department of Industrial Policy and Promotion (DIPP), depicting a massive decline in the Foreign Direct Investment (FDI) in the Indian telecom sector, hints of an alarming situation in the industry. (See Ruining Domestic Manufacturing Prospects? and TEMA Bats For Domestic Manufacturing.)

The FDI in the industry for the six-month period between April-September of the fiscal year 2013 plunged to a miniscule INR 2.3 billion (US$43 million) compared to INR 103 billion ($1.9 billion) in the same period a year ago, further explaining the critical financial situation of the sector.

Industry experts point out a number of issues which are responsible for the failure of wooing global investors, in which a lack of innovation and manufacturing in the sector tops the list. (See Tech Innovation To Drive Telecom Growth and NSN'S Flexi Zone Wins Innovation Award.)

"Though the industry is surrounded by clouds of uncertain regulatory measures, operators have also failed to innovate in the sector, and gaining more subscribers is still on their priority list," says Rahul Gupta, an independent telecom analyst.

He further adds that at present, there is nothing substantial in the industry which could attract foreign investment. (See CSPs Plan Greater Investments In CEM and IndiaWatch: Aircel Plans Fresh Investment.)

Adding to that, Faisal Kawoosa, the lead telecom analyst at CyberMedia Research says that innovation on the manufacturing front is the need of hour for the industry.

"Though a decrease in the FDI will not have a tremendous impact, it is still a matter of concern and we will have to focus on manufacturing in the industry to attract investments," says Kawoosa.

Experts also believe that demoralizing regulatory conditions are further fueling the fire.

"The government's failure to attract operators to bid for the entire spectrum in the recently-conducted 2G auction clearly indicates that the prevalent regulatory conditions are not industry friendly," adds Gupta.

Kawosaa adds in a similar tone that Vodafone India 's tax liability issue also oozed negative vibes for the investors worldwide. (See IndiaWatch: Vodafone Challenges DoT and Vodafone Serves Notice Against Indian Govt.) ; - Rimit Singh, Correspondent, Light Reading India

Any Content material offence , contact me freely on kuberbshiva06@gmail.com.. this content rewrites or copied from Top level web-source - [lightreading.in],

Thank you

Prabhakar [ vampseo]

Indian SEO blogger