Make In India

Telecom Sector Overview

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India’s Telecom sector, valued at ₹2.5 trillion in 2023-24, is one of the fastest-growing in the world. The sector has witnessed rapid expansion, driven by increasing mobile phone penetration, 4G/5G technology adoption, and rising demand for data services. With 1.2 billion mobile subscribers and a thriving digital economy, India is positioned to become the largest telecom market globally by 2027.

Why Invest in the Telecom Sector

  • High Market Growth: India’s telecom market is projected to grow significantly due to rising data consumption and expanding network infrastructure, particularly with the roll-out of 5G technology.
  • Government Initiatives: The government’s push for Digital India, the National Telecom Policy, and 5G roll-out plans are creating opportunities for telecom infrastructure and services.
  • FDI Potential: India’s telecom industry has attracted substantial foreign investment, providing opportunities for global players in technology and infrastructure.

Incentives & Schemes

  • PLI Scheme for Telecom: ₹12,195 crore allocated for manufacturing telecom equipment, including 5G technology and optical fiber cables.
  • 5G Spectrum Auctions: Government plans to auction 5G spectrum in 2024, which will further boost growth in high-speed internet and telecom services.
  • National Digital Communications Policy (NDCP): Aims to achieve $100 billion in revenue from the digital communications sector by 2025.

Highlights

  • Mobile Subscribers: India has the world’s second-largest mobile subscriber base with 1.2 billion subscribers in 2023.
  • 5G Rollout: India is expected to roll out 5G services by 2024, bringing enhanced mobile broadband, IoT capabilities, and a surge in telecom demand.
  • Export Potential: The telecom sector is poised to grow its export revenue by expanding digital services to global markets.

Telecom Sector Data

Category Details
Market Size (2023-24) ₹2.5 trillion
Mobile Subscribers 1.2 billion (second-largest mobile subscriber base globally)
5G Spectrum Auction Scheduled for 2024 to enable 5G services
FDI in Telecom Over $10 billion in cumulative FDI in telecom infrastructure
PLi Scheme Allocation ₹12,195 crore for telecom equipment manufacturing
Data Consumption Growth 30% annual growth in mobile data consumption
Telecom Exports Projected to reach $10 billion by 2025
Telecom Employment 4 million people employed in telecom services
Revenue from Telecom Service ₹1.9 trillion in 2023-24
Mobile Device Market 70% of mobile phone sales are in the affordable segment

Latest Figures and Progress

  • Market Size: The telecom sector is valued at ₹2.5 trillion in 2023-24 and is set to expand with 5G adoption and increased digital service usage.
  • FDI: The sector has attracted over $10 billion in foreign direct investment, showcasing global confidence in India’s telecom market.

India’s Telecom sector, supported by strong government policies, expanding infrastructure, and increasing digital connectivity, presents robust investment opportunities, especially with the upcoming 5G revolution.