Policy Watch: Satcom For All, Northeast Connectivity & More

Rs 1,000 Cr More To Boost Maritime Connectivity In NE

The central government will be spending an additional Rs 1,000 crore by 2026 to boost maritime connectivity. This amount will be in addition to the already earmarked Rs 1,000 crore, which was allocated over the last couple of years.

Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal, held a meeting on Sunday to review the progress of the inland waterways projects in Assam and other Northeastern states. “Our projects here are central to the vision of Viksit Bharat,” he said.

The fund will be used to develop terminals and navigation systems across the Brahmaputra and Barak rivers. This will make cargo and passenger movement seamless and cost-effective.

Robust and efficient connectivity in the Northeast region will be crucial for India, especially to ensure steady supply chains with the Southeast Asian economies.

With a 7,517 km-long coastline and 14,500 km of potentially navigable inland waterways, India occupies a strategic location on major international trade routes, a 2019 KPMG report stated.

Auxiliary maritime infrastructure got a boost from the government’s flagship Sagarmala Programme, which was launched in 2015 and aimed at fostering an integrated port-centric logistics network in the country.

India's Trade & Manufacturing Brace For Global Headwinds

While the global economy goes through volatile swings, India’s recent trade and manufacturing policymaking has been in the fifth gear. New Delhi and London have finally managed to sign a bilateral free trade agreement (FTA), while the whirlwind negotiations are on for an Indo-US FTA to dodge the 26 per cent US tariff wall by the July 8 deadline.

In other trade parlays, the 11th round of India-EU FTA talks just concluded on May 18. This is part of the quest to diversify trade partnerships and become a global supply chain giant.

Meanwhile, India’s Directorate General of Foreign Trade (DGFT) unveiled a Global Tariff and Trade Helpdesk. This will be the gateway to address various import and export-related operational hurdles, including dumping, EXIM clearances and compliances. The helpdesk is created to provide timely support to Indian exporters and importers navigating the fluid global trade landscape.

Back home, complementary efforts are on in boosting the manufacturing playbook. The central government has reinforced its focus on the Production Linked Incentive (PLI) scheme. PLI is already a hit in the stadium of Indian exports, as the recent US$ 20.4 billion surge in mobile phone exports is widely attributed to the scheme.

The country is also safeguarding its indigenous producers. Safety norms are tightened to prevent low-quality Chinese appliance imports. The government is actively planning stricter norms for foreign-owned companies by amending the insolvency law.

Similar momentum can be seen in drafting the new National Manufacturing Mission. An inter-ministerial committee is already set up to frame it. The mission is likely to rejuvenate Make in India, improve the ease of doing business, and strengthen the MSMEs. Stakeholder consultations are on, and the draft should soon see the light of day.

India is not just watching the global economic and trade turmoil from the sidelines, but also manoeuvring its way through the troubled waters.

India Poised For Rapid Satellite Communication Expansion

In India, the rollout of satellite communication (satcom) services will be the fastest the world has seen, according to Communications Minister Jyotiraditya Scindia.

Speaking at the World Telecom and Information Society Day event hosted by the Telecom Regulatory Authority of India (TRAI) on Tuesday, Scindia highlighted the government's commitment to advancing satcom infrastructure to bridge the digital divide across the nation.

TRAI has submitted recommendations on satcom spectrum allocation. The onus is now on the Department of Telecommunications to finalise the satcom policy. This regulatory progress has spurred a surge in applications from companies eager to offer satellite communication services in India.

Scindia projected that India's satcom market, currently valued at US$ 2.3 billion, could expand tenfold to reach US$ 20 billion by 2028. This growth trajectory mirrors India's swift 5G rollout. 

International players are also eyeing India's satcom sector. Just weeks ago, Elon Musk’s Starlink received a letter of intent from the telecom department to offer satellite internet services in the country. 

It now needs regulatory clearances from the Indian National Space Promotion and Authorisation Centre (IN-SPACe) and will be allocated spectrum before beginning operations.

Starlink has also entered into agreements with major Indian telecom operators Reliance Jio and Bharti Airtel to distribute its satellite internet services. 

The theme for Tuesday's event was universal and meaningful connectivity, which means that communication networks are available, accessible, relevant, and affordable. 

Satellite communication, with its potential to reach underserved and remote areas, is set to play a central role in realising that vision.

(Contributed by Jayanta Roy Chowdhury, Mahua Venkatesh, Abhijit Mukhopadhyay & Prakriti Bakshi; curated by Bodhisattwa Maity)