Telecom Industry in India: Market Size, Growth & Future

India plans to manufacture mobile phones worth US$ 126 billion by 2025-26.

Advantage India

Robust
Demand

* Tele-density of rural subscribers reached 60.02% as of February 2026.​

* 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.​

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Attractive
Opportunities

* 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.

* Expansion of the India Semiconductor Mission and electronics manufacturing schemes will strengthen domestic capabilities and supply chains. Tax exemptions for data centre services until March 2047 further support infrastructure growth.

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Policy
Support

* The Production-Linked Incentive (PLI) scheme for telecom and networking products has been allocated Rs. 1,950 crore (US$ 220.7 million) in the Union Budget 2026–27.

* DoT has reduced Telecom Security Testing Laboratory (TSTL) fees by over 50%, along with additional concessions for startups, MSMEs, and public institutions significantly lowering entry barriers and promoting wider participation in the telecom ecosystem.

* The ITSAR certification process for ONT devices has been streamlined by enabling single certification for multiple variants, reducing testing requirements by up to 10x and accelerating product approvals.

* The Telecom Technology Development Fund (TTDF) scheme of DoT supports indigenous telecom R&D. As on February 2026, 104 projects amounting Rs. 271 Crore approved for research and development of 6G technology.

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Increasing
Investments

* The Department has been allocated Rs 73,990 crore, which is 1.4% of the total budget of the central government. The allocation to the Department in 2026-27 is estimated to increase by 39% from the revised estimate of 2025-26. The increase is mainly due to a higher capital infusion in BSNL. This is aimed to support technology upgradation and restructuring in the company. It is part of the revival plan for BSNL. The central government has been implementing this revival plan to improve the financial health of BSNL and MTNL since 2019.

* India leads in several indicators - secured 1st rank in “Annual investment in telecommunication services”, “AI scientific publications”, “ICT services exports” and “E-commerce legislation

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Last updated: Feb, 2026

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