Telecom Industry in India

India's telecom sector is the second largest globally with regards to subscriber base.

Advantage India

Robust
Demand

* In India, the total subscriber base stood at 1178.41 million in December 2021.

* Tele-density of rural subscribers reached 44.40% in December 2021. From around 4,200 petabytes in 2018, India's overall wireless internet data usage has increased by almost 7x to 32,397 petabytes in 2021.

* Also, India is one of the biggest consumer of data worldwide. As per TRAI, average wireless data usage per wireless data subscriber was 11 GB per month in FY20.

Attractive
Opportunities

* India's 5G subscriptions to have 350 million by 2026. accounting for 27% of all mobile subscriptions.

* For domestic consumption and export, Ericsson will start manufacturing 5G radio products in India.

* By 2025, India will need ~22 million skilled workers in 5G-centric technologies such as Internet of Things (IoT), Artificial Intelligence (AI), robotics and cloud computing.

Policy
support

* The Union Cabinet approved Rs. 12,195 crore (US$ 1.65 billion) production-linked incentive (PLI) scheme for telecom & networking products under the Department of Telecom. On October 14, 2021, 31 companies comprising 16 MSMEs and 15 Non-MSMEs (eight domestic and seven global companies) have been approved under the Production-linked Incentive (PLI) Scheme. To drive the development of 6G technology, the Department of Telecommunications (DoT) has developed a sixth generation (6G) innovation group.

Increasing
Investments

* In Union Budget 2022-23 the Department of Telecommunications was allocated Rs. 84,587 crore (US$ 11.11 billion). Revenue expenditure was allocated 36% and capital expenditure 64%.

* FDI inflow in the telecom sector stood at US$ 39.02 billion between April 2000-September 2022.

Last updated: Jan, 2023

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