T&M Industry in India:FY13 Drivers for the Customers

The FY 13 has started with some mixed feelings and hangup of policy paralysis and balance sheet constraints for the Government.The overhang of policy retrospective for tax calculation on Capital Gains is there,with deficit on balance of payment widening.Rupee is flirting around 51 to a Dollar.T&M demands naturally is not auguring well because all the major purchases need to be imported.In such a scenario the different sectors using T&M are stacked up as follows:

Defense: The controversy and major scandals reported in the press recently will have its contingent effect on T&M purchases in the three wings of services.SMT/STE products and tools in EME TG trials will be slightly delayed but tendered purchases will happen as in the pipeline.Likewise the field purchases through tenders of DGS&D will happen as planned.

Telecom: The major driver in the operator sement will be the LTE.The TDD version is automatically decided per the band alloted and the choice for adopting International standards.Many vendors have done the PoC with major operators and initial orders for LTE infrastructure are trickling in.So the deployment T&M either directly,or through lease rental will happen.Even though fizz may not be there! Likewise major fiberisation project will go through.

Research & Development/Education sector: This will show a big boost with some major T&M purchases planned and under discussion at DGS&D and local Demand Officers level.The good part is that the demand will be higher than last year,more evenly distributed and geographically balanced.Perhaps North India overall will pip to the post when it comes at the year end.South and West will not be brighter this year!

So, Let us welcome the year fingers crossed.Hope is high but a couple of Government announcement positively could boost sentiments.