After an unofficial ban on Chinese telecom equipment vendors by Department of Telecommunications (DoT) and imposition of stringent norms on imported equipments on security issues, the Chinese vendors have started receiving orders from Indian telecom service providers to get ready for the rollout of 3G services. The two Chinese vendors who received clearances are Huawei and ZTE.

The revised norms for imported telecom equipments were announced by DoT in July, which drew large-scale protests from vendors worldwide. The new rules required equipment suppliers to provide government access to the equipment’s source code and design. Also, the suppliers will be held responsible for any security breach and hefty fine levied.

As the relationship between DoT and vendors were straining with the deadline for 3G rollout looming large, the Prime Minister’s Office is believed to have intervened, leading to rollback to earlier less stringent rules. Nokia Siemens was the first beneficiary under this last month. However, it was unclear whether this was a one-off case and will extend to other vendors, especially Chinese ones.

In the 3G auction held earlier this year, Tata Teleservices Ltd (TTSL) had won in nine circles. Both Nokia Siemens and Huawei were selected by TTSL as suppliers for its 3G rollout. While Nokia will rollout 3G network in four circles, Huawei will do so in five. The clearance from DoT based on liberal norms has enabled the Chinese vendor to land the second order in the country for 3G gear. Huawei’s first deal was signed with Reliance Communications.

Confirming the news TTSL Chief Technology Officer and President (Enterprise Business) A G Rao said, “The company will provide superior 3G technology and services to all our esteemed consumers, and to this end, we are getting the latest LTE-ready technology from our technology partner, Huawei.”

The latest development in the ongoing saga of decontrolling sugar from government control is Agriculture Minister Sharad Pawar meeting the Prime Minister Manmohan Singh on Thursday to present a case for liberating the sector. Earlier the parliamentary panel on food and agriculture had recommended against sugar decontrol, saying that it will harm both farmers and consumers.

The sugar industry, at present, is controlled by government, by specifying the quantity to be sold in the open market and through public distribution system (PDS) every month. With the imminent bumper crop, which will be ready in two months’ time, the move to decontrol sugar is gaining momentum.

The presentation made by Mr. Pawar to the Prime Minister is believed to include plans and methods Food Ministry will be adapting to free sugar industry from governmental control. Mr. Pawar is understood to have discussed the beneficial outcomes of the move for farmers and consumers.

Among the proposals put forth by Food Ministry is doing away with the practice of setting monthly quota for sale of sugar in open market and through ration shops. Now, sugar mills are bound by law to sell 20% of the sugar produced to government for sale in ration shops. To meet the sugar requirement for PDS, the ministry has advocated purchase of sugar from the open market.

It is believed that the Food Ministry has proposed to give freedom to farmers to sell their produce wherever they want to, instead of the present practice of selling sugarcane to specified mills.

Earlier, Mr. Pawar had hinted that despite decontrolling sugar industry, the government would continue to fix Fair and Remunerative Price (FRP) for sugarcane to protect farmers from exploitation. This is the minimum price to be paid by mills to buy sugarcane from farmers.

The BlackBerry issue is not yet resolved; the government is stepping up efforts to get data access to all communication services in the country. The Home Secretary G K Pillai said that notices are being sent to all companies providing communication services in India to make available access solutions to security agencies so that they can monitor the data as and when required. The firms are also being asked to set up a server in India.

Most important among the service providers who are issued notices are Google and Skype, the internet phone call provider. The notice asks the firms to make suitable arrangements to provide access to their services within the next 60 days.

Meanwhile, Research In Motion (RIM), the BlackBerry maker averted an imminent ban on its services by agreeing to set up a server in India and provide partial access to its encrypted data. Home Minister P Chidambaram confirmed that RIM has already begun providing access to some of the communications transmitted through its system. The government has given the smartphone maker a 60-day extension of August 31 deadline for complete compliance. The minister added that there won’t be any compromise on national security with regards to BlackBerry, Google or Skype.

“Discussion on technical solutions for further access is continuing and the matter will be reviewed within 60 days,” the minister concluded. “Our stand is firm. We look forward to get access to data… There is no uncertainty over it.”

Mr. Pillai said, “People who operate communication services in India should have servers in India as well as make available access to law enforcement agencies, whatever communications passes through telecommunication network in India and that has been made clear to RIM of BlackBerry but also to other companies.”

Backed by splendid year-on-year growth in manufacturing sector and rising farm output, Indian economy grew at the fastest rate in the past three years in the June-ending quarter. While the economy expanded by 8.8%, the manufacturing sector grew by 12.4% and annual farm output rose by 2.8%.

The latest growth figures reiterates the fact that Asia’s third-largest economy did not lose momentum during the period, despite the slow pace of global recovery and concerns of another round of economic downturn. The country also had to deal with the near double-digit inflation, which demanded strong fiscal measures.

The Reserve Bank of India was in a dilemma earlier whether to go all out in containing the runaway inflation without harming the amazing run of the economy. The central bank has stated time and again that containing inflation is being giving precedence to other policy objectives and followed it up by hiking interest rates four times in the last four months. The fact that economy is sound and steady gives RBI ample space to maneuver and focus on inflation-control fiscal tightening measures.

The consistency in economic growth is mostly due to the buoyancy in the domestic consumer market. This is thoroughly reflected in the automobile sales, which rose by 38% in July, forcing car manufacturers to run their factories to the optimum capacity.

The manufacturing sector witnessed a robust growth of 12.4% y-o-y. This growth is substantial when compared to the growth percentage of 3.4% for the same period last year. The agriculture sector expanded by a healthy 2.8% during the quarter. The trend is expected to continue on good monsoon forecast.

The sturdy growth may prompt RBI to go in for another rate hike during its quarterly policy review scheduled on September 16.