The government said that the National Telecom Policy 2011 (NTP’ 11) will have provisions to encourage domestic telecom manufacturing .

Telecom secretary R Chandrashekhar said NTP'''11 will surely have mechanism to gauze efficient use of spectrum and steps to promote indigenous manufacturing of telecom equipment.

"Need of promoting R&D (research and development) and manufacturing is important. Not just because it is one sector in which we aspire to be manufacturing destination but there are reasons to it," Chandrashekhar said.

He said promoting telecom manufacturing in India is important to leverage the benefits of the growing industry and reducing the trade deficit expected to arise from imports of electronic products that are used in the sector.

"Today you look at electronic projection which says that India is going to be USD 400 billion electronics market. If we continue to business as usual then USD 300 billion of our requirement will come from imports," Chandrashekhar added.

He said India''s electronics import will surpass oil import bill, which is around USD 100 billion.

Besides, Chandrashekhar said that due to security reasons, it has become inevitable to ignore initiative for promotion of domestic manufacturing.

"Domestic manufacturing is important from security point of view, which has become imminent," he said.

Trai chairman J S Sarma said the regulatory authority, in its upcoming recommendations on promotion of indigenous telecom equipment manufacturing, is going to raise levels of domestic manufacturing significantly.

"In our recommendation, we are going to raise level of domestic manufacturing significantly. We will give certain targets on year basis which is for 2013, 2015, 2017 and 2020" Sarma said.

He added, the Telecom Regulatory Authority of India will come out with the recommendations by the end of this week.