Tuesday, August 31, 2010

Chinese handsets may sport “Made in India” tag

It is one Chinese move which the Indian government won't mind at all. Chinese telecom equipment makers and telecom companies with a large manufacturing base in China are looking to either set up their manufacturing base in India or ramp up their facilities.The move comes on the back of a recent decision by the Indian government to put strict security checks on imported equipment especially Chinese equipment.UTStarcom, a global provider of Internet Protocol (IP)-based network solutions, which is betting big on the 3G and next generation telephony market in India may infact decide to push forward their plans to set up a Rs. 400 crore manufacturing unit.Other Chinese equipment makers are still hoping for some more clarity.The Indian telecom equipment market is almost worth $8-10 billion annually and third generation (3G) itself will generate additional equipment orders worth $4 billion in the first year of launch itself. But some equipment makers say they need large orders to move manufacturing here.Chinese Equipment makers like ZTE are hoping that by October a clear government policy will be in place giving Chinese equipment makers the opportunity to re-enter the Indian market in a big way whether it is for backend equipment or the highly competitive mobile handset business.