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Create a vibrant manufacturing ecosystem by incentivizing design-based manufacturing, strengthening IPR, standards & R&D, and encouraging component manufacturing. Position India as the global fiber manufacturing capital due to significant demand and scale capacity. Ease of doing business with lowest operating costs.
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Create a vibrant manufacturing ecosystem Strengthen IPR, Stds and R&D BB Manufacturing Committee
Enhance the Role of “ Make in India’ to boost the domestic manufacturing ecosystem • Make for India and for the world - Global supply chain with a strong export strategy • Position India Brand as the fiber manufacturing capital of the world given the significant demand and scale capacity and capability • Incentivize design based manufacturing in India to increase value creation in manufacturing. • Encourage component manufacturing ecosystem • Ease of doing business - Lowest operating cost – labor, freight, facilities, electricity, etc.
Incentivize and strengthen IPR, R&D and Standards. • Employ globally harmonized standards to exploit economies of scale and make India competitive in the global market. • Incentivize contribution to standards by strengthening standards from India. • Strengthen the IPR regime without seeking any dilution of the SEP regime • Incentivise local R&D. • Remove all barriers for permitting setting up of Global R&D hubs out of India
India as Fiber capital of the world
India Demand significant • Data intensive fiber is fundamental to all new technologies and wireless especially with the coming of 5G, IOT, M2M and increased need for low latency and high bandwidth of data. • India potential demand significant • Govt Programs • FTTH • 100% fiberization of cell sites from mere 20%. • Global is shooting up !
5G would create strong demand for fibre backhaul Implications on fibre requirements 5G will require 20-30x the number of cells of a conventional cellular network • 5G deployments will require fiber for backhaul: backhaul will constitute 15-30% of 5G deployment costs • Fiber requirements for 5G likely to be 3-5X for same coverage for 4G in the massive MIMO mode • This increased demand for fiber will result in massive (order of magnitude) change in the fiber infrastructure of several countries – US, Western Europe, Japan, Korea to start followed by China, India, Latam, Eastern Europe • Governments will need to play a critical role in providing incentives for enabling the same Typical LTE cell coverage Typical 5G cell coverage ~550+ Meters1 ~100 Meters2 1 For typical 2.1 GHz LTE base station in urban area 2 For 5G small cell based on >5GHz+ spectrum in urban area Source: McKinsey
5G wireless needs fibre, and lots of it Fibreized Infrastructure is the key to sustainable future 2x times fiber could be deployed due to the 5G bandwidth and latency requirements • Data consumption is expected to grow along with rapid evolution of technologies, such as 5G • Surge in data traffic propels growth of Optical Fibre Peak Data Rate -Mbps • Fibre is the best & most efficient medium to support exponential data demand growth 4.5x times fiber deployed due to the shift from 3G to 4G+FTTH Mobile 2G- GSM / GPRS Mobile 3G - CDMA2000 / EV-DO Mobile 3G - WCDMA / HSPA 4G- LTE & FTTH 5G Network Source: Qualcomm & CRU
India has the real opportunity to become the Fiber capital of the world- currently china is ahead Fiber Design led Manufacturing can put INDIA on the Map of the world Capacity caters to global consumption* MAKE IN INDIA CASE STUDY Fully indigenous Design led Manufacturing Fundamental R&D 160 + patents - Global Standards Scale in capacity and capability Investment in Academy Cater to 30% of world demand and growing.. Govt focus on PMA with 70% VA is leading India to become the Fiber capital of the world *Source : Sterlite, CRU estimates. Based on Conservative growth assumptions
Given the confidence of the industry and a vibrant expansive market, It is at this juncture that a special incentive package should be given to this industry to make India as the fibre manufacturing capital of the world.
Critical impetus • Incentivize design based and complex manufacturing of fiber • Ensure quality preform is created in the country • Further Strengthen VA percentage to ensure objective • Ensure exim policy supports Fiber capital status. • 10% BCD import duties on fiber to ensure vibrant ecosystem from India • Export incentives from 2% to 5%. • Encourage investment in Standards, IPR and R&D .