India is the world's second-largest telecommunications market, with over 1.17 billion subscribers as of January 2018. The wireless segment (98.04 per cent of total telephone subscriptions) dominates the market. It has also been growing at a brisk pace. During FY07-17, wireless subscriptions witnessed a CAGR of 21.64 per cent to reach 1,170.2 million. India is also the second largest country in terms of internet subscribers with 445.96 million internet subscribers, as of December 2017. The country is now the world’s second largest smartphone market and will have almost one billion unique mobile subscribers by 2020. Revenues from the telecom equipment sector are expected to grow to US$ 26.38 billion by 2020.
India’s telecommunications market is expected to experience further growth, fuelled by increased non-voice revenues and higher penetration in rural market. Telecom penetration in the nation's rural market reached 56.63 per cent in January 2018. The emergence of an affluent middle class is triggering demand for the mobile and internet segments.
Strong policy support from the government has been crucial to the sector’s development. Foreign Direct Investment (FDI) cap in the telecom sector has been increased to 100 per cent from 74 per cent. Also, Government of India is soon going to come out with a new National Telecom Policy 2018 in lieu of rapid technological advancement in the sector over the past few years.