Draft National Telecom Policy 2025 and Its Impact

→ The draft National Telecom Policy (NTP) 2025 proposes incentives for telecom operators to use domestically designed and manufactured equipment. This shift aims to empower Indian gear makers like

, , , and various startups, potentially reshaping the competitive landscape long dominated by global giants such as Nokia, Ericsson, Samsung, and Cisco. → Despite a similar provision in the 2018 policy, actual implementation was limited. Industry voices, including the director general of VoICE, highlight that strong execution, reduced levies, and active support for Indian manufacturers are critical for meaningful impact. → Currently, Indian private telecom operators remain heavily dependent on foreign suppliers for 4G and 5G network equipment. The new policy intends to reverse this trend by advocating clear incentives, streamlined procurement, and policy alignment to address scale and cost disadvantages faced by local companies. → Effectiveness depends on not just incentives but also broader ecosystem development: building trust in Indian R&D, ensuring timely incentive disbursements, and fostering companies that can compete globally. Past underperformance of the Production Linked Incentive (PLI) scheme—with only half of the shortlisted firms availing incentives—raises concerns that NTP 2025 will require robust follow-through to succeed. → If well-executed, the policy stands to benefit Indian players like Tejas Networks, HFCL, and STL the most, boosting domestic manufacturing, supporting startups in telecom hardware, and challenging the market share of established foreign equipment vendors in India’s massive and growing telecom sector.