New Delhi: Growth in telecom equipment production is likely to decline by 27-30 per cent this year on account of global financial meltdown, however the sector will continue to grow at 30 per cent, the industry body TEMA today said.

"The growth rate of telecom equipment production is expected to come down from an all timehigh of 71 per cent in 2006-07 to about 27-30 per cent in the current year due to the globalslowdown and exports of the products slowing down," Telecom Equipment Manufacturers Association of India (TEMA) President Bharat Bhatia said.

However, despite the slowdown in 2008-2009,production is expected to cross Rs 50,000crore reaching Rs 51,800 crore, Telecom Equipment Manufacturers Association of India (TEMA), the mouthpieces of the Indian telecom manufacturing industry said.

Telecom equipment manufacturing in India had recorded highest ever growth in 2007-08 which was estimated at Rs 41,270 crore compared to Rs 23,700 crore during 2006-07.

Higher production in 2006-07 was driven by more production of wireless equipment to meet the demand of the cellularoperators and consumers, Bhatia said. "This year the expected production from the wireless equipment market includingcellular phonesis estimated to be Rs 41,650 crore with a growth rate of 46 per cent," he said.

The growth in wireless equipment market comes from integrated manufacturing plantsby global wireless majors such as Nokia, Motorola, LG Samsung and Sony Ericsson.

However, the performance on the wire line equipment production is however not very encouraging due to reduced demand from operators. The wireline equipment production has gone down from Rs 131,00 crore to Rs 11,780crore and is further expected to fall down to Rs 9450 crore this fiscal.

Source : PTI