Telecom Industry in India: Market Size, Growth & Future

Investment/Major Development

With daily increasing subscriber base, there have been a lot of investment and development in the sector. FDI inflow in the telecom sector stood at Rs. 2,42,122.16 crore (US$ 40,190.37 million) between April 2000-March 2026.

Some of the developments in the recent past are:

• On April 13, 2026, Bank of Baroda partnered with Reliance Jio to launch bob World Lite, India's first comprehensive mobile banking application for feature phone users. Available on the JioPhone Prima 4G, the initiative aims to expand digital banking and UPI-based payment services across semi-urban and rural India.
• On March 10, 2026, Bharti Airtel became the first telecom operator to provide mobile connectivity in Marwah, Jammu & Kashmir, a remote region linking Kishtwar and Anantnag. The deployment extends high-speed network coverage across a previously unconnected 150-km corridor, enhancing digital inclusion, supporting tourism development, and improving connectivity for local communities and security forces.
• On March 30, 2026, Nxtra Data, a subsidiary of Bharti Airtel, secured US$ 1.0 billion in funding from Alpha Wave Global, Carlyle, Anchorage Capital, and Airtel to expand its data center network across India and support growing demand for AI, cloud, and hyperscale infrastructure.
• At the end of 2025, 5G subscriptions reached 430 million and accounted for 35 per cent of total mobile subscriptions, the Ericsson Mobility report said. India also continues to lead globally in mobile data consumption per smartphone, the average monthly usage already at 37 GB is expected to nearly double to 70 GB by 2031.
• India’s satellite communications (SATCOM) sector is set for robust growth, with the market expected to double over the next few years, Union Minister for Communications Mr. Jyotiraditya M. Scindia said. Highlighting the government’s proactive approach, he noted that three SATCOM licenses have already been issued and that regulatory frameworks and licensing processes are being formalised.
• India accounted for 7.9% of the global smartphone market by value in H1 CY25, up from 7.7% a year earlier, making it the third-largest market worldwide, even as China and the UK saw their shares decline.
• On August 22, 2025, the Department of Telecommunications (DoT) urged M2M service providers, government ministries and IoT device makers to adopt oneM2M standards, to ensure secure, interoperable and scalable IoT ecosystems in India.
• In April 2026, India’s Unified Payments Interface (UPI) processed 22.35 billion transactions worth Rs, 29.03 lakh crore (approximately US$ 328.4 billion). The platform had 713 participating banks, highlighting the continued expansion and widespread adoption of digital payments across the country.
• Indian users spent over 1.2 trillion hours on mobile apps in 2025, up from 1.1 trillion hours in 2024 and 1 trillion hours in 2023.
• On June 16, 2025, TRAI’s Independent Drive Tests showed call drop rates under 2% in most cities, but weaker performance in Delhi, Bihar & Jharkhand, and parts of Sikkim.
• The Sanchar Saathi Mobile App, launched by the Department of Telecommunications (DoT) on 17 January 2025, improves telecom digital experience by enabling users to report fraud, manage lost or stolen devices, and check mobile connections in their name. Available on Android and iOS with support for Hindi, English, and 21 regional languages, it ensures broad accessibility. The app has crossed 1.5 crore downloads, highlighting strong adoption of secure, self-service telecom services.
• As of March 2025, the Indian telecom sector stands as the fourth-largest recipient of FDI equity inflows in India.
• The Union Budget 2026–27 has allocated Rs. 73,990 crore (US$ 8.37 billion) to the Department of Telecommunications, with the total net outlay reaching Rs. 80,927 crore including additional funding from the Universal Service Obligation Fund (USOF), reflecting continued emphasis on rural connectivity and telecom infrastructure expansion.
• The 5G infrastructure market is set to soar from Rs. 1,19,966 crore (US$ 14 billion) in 2025 to Rs. 49,18,606 crore (US$ 574.4 billion) by 2035, growing at a 45% CAGR on the back of rapid adoption, heavy investments, and large-scale rollouts.
• As of February 2026, approximately 5.23 lakh 5G Base Transceiver Stations (BTSs) have been installed across the country, reflecting the rapid pace of network expansion.
• As of October 2025, out of 644,131 villages in India, 634,019 are covered with mobile connectivity, of which 630,676 have 4G services. Broadband subscriptions have increased from 48 crore in September 2018 to 98 crore in June 2025, reflecting significant expansion in digital connectivity, driven by initiatives under the Digital Bharat Nidhi.
• The government is targeting fibre connectivity to every home in FY2026, with a goal of 1.5 crore FTTH connections and deployment of nearly 7 lakh km of optical fibre (OFC), alongside state-led execution models (e.g., Gujarat achieving 100% targets).
• The volume of total wireless data usage increased from 69,090 PB in Q.E. Sep-25 to 73,324 PB in Q.E. Dec-25, registering a quarterly growth rate of 6.13%.
• The total number of wireless data subscribers increased from 961.08 million at the end of Sep-25 to 1,018.59 million at the end of Dec-25.
• Out of the total 73,324 PB wireless data usage in Q.E. Dec-25, 2G data usage was 48 PB, 3G was 95 PB, 4G accounted for 44,087 PB, and 5G stood at 29,094 PB during the quarter.
• The contribution of 2G, 3G, 4G, and 5G data usage to the total wireless data volume was approximately 0.07%, 0.13%, 60.13%, and 39.68%, respectively, in Q.E. Dec-25.
• On October 14, 2025, Bharti Airtel partnered with Google to establish India’s first AI hub in Visakhapatnam, with an investment of US$15 billion, aimed at strengthening digital infrastructure, data centre capacity, and AI adoption across the country.
• On February 14, 2025, JioStar officially launched JioHotstar, merging JioCinema and Disney+ Hotstar into a single OTT platform with over 3,00,000 hours of content, multi-language support, AI-driven recommendations and premium sports, including IPL and ICC tournaments, into one immersive streaming experience.
• India’s 5G subscriber base is projected to surge to 980 million by 2030 from 290 million in 2024.
• As of April 2026, the wireless subscriber base of Jio stood at 505.92million, followed by Bharti Airtel 487.36 million, Vodafone Idea 201.21million, and BSNL 94.22 million.
• The wireless segment accounted for 96.4% of the total telephone subscriptions in April 2026 while, the wireline accounts for 3.6%.
• As of April 2026, the urban and rural segments accounted for 58.5% and 41.5% of the total telecom subscriber base in India, respectively.
• Bengaluru-based gear maker Tejas Networks has won a three-year deal (2024 to 2027) from Vodafone Idea (Vi) to supply backhaul equipment for India's third-largest telecom operator's 4G and commercial fifth-generation or 5G networks.
• The telecom industry recorded 10.72% sequential growth in gross revenue (AGR) at Rs. 3,72,097 crore (US$ 43.42 billion) in FY25 from Rs. 3,36,066 crore (US$ 39.22 billion) in FY24.
• On June 26, 2024, Vodafone Idea invested Rs. 3,510 crore (US$ 409 million) to acquire 50 MHz of spectrum across low and mid bands in 11 circles, boosting its 4G capacity and laying the groundwork for 5G rollout.
• Union Minister of Communications Mr. Jyotiraditya Scindia inaugurated Bharat Telecom 2025 in New Delhi, highlighting India's growing role as a global telecom exporter and innovation hub.
• In February 2026, a Memorandum of Cooperation (MoC) was signed between the Digital Bharat Nidhi and the Government of Andhra Pradesh to accelerate the rollout of the Amended BharatNet Programme in the state. With an approved financial support of Rs. 2,432 crore (US$ 275.2 million), the initiative aims to strengthen rural telecom infrastructure by enhancing last-mile connectivity, upgrading network resilience, and expanding broadband access across over 13,000 Gram Panchayats.
• Airtel Payments Bank surpassed one billion transactions in January 2025, reflecting a 47% YoY growth in transaction volume. The achievement highlights the increasing adoption of digital banking solutions and the bank's diverse business model.
• Independent telecom tower companies are expected to spend Rs 21,000 crore (US$ 2.42 billion) for the period between FY25 and FY26 in order to support the telecom companies in expanding rural networks and also improving service quality in urban areas, stated a report by CRISIL Ratings.
• Bharti Airtel has become the first private telecom operator to launch mobile services in Kupwara, Baramulla and Bandipore districts of Jammu and Kashmir.
• The Centre for Development of Telematics (C-DOT) and IIT Roorkee have partnered to develop a "Millimetre Wave Transceiver for 5G Rural Connectivity," supported by the Telecom Technology Development Fund. The project aims to improve affordable broadband and mobile services, bridging India’s digital divide.
• Vodafone Idea (Vi), boosted by a recent equity funding, plans to open more retail outlets to increase the sales.
• India's Bharat 6G alliance and the European telecom industry organization Industry are planning to establish a partnership. This partnership will facilitate cooperation between the two groups in the development of 6G technology.
• To make India 5G-ready, there is a push for fiberisation of telecom towers. Currently, 36% of towers are fiberized, and plans involve deploying 12 lakh towers.