Indian Economy News

5G/6G waves are expected to boost the Indian economy over the next five years: KPMG

  • IBEF
  • October 31, 2023

According to a report by KPMG released at the India Mobile Congress 2023, 5G/6G, satellite communications, and semiconductors are expected to collectively contribute about US$ 240 billion to the Indian economy in the next five years, growing to around 1.6% of the gross domestic product (GDP) by FY28, made possible by favourable policies from the government and a large domestic market.

The key policy recommendations include formulation of regulations and administrative processes in the context of digital connectivity infrastructure development (DCIP), transitioning from the assembly-only approach in electronics manufacturing to an end-to-end holistic approach, and encouraging low-cost component manufacturers to set up operations in India.

The recommendations also include using its manufacturing capacity to create and export 6G equipment to other countries, expediting the plan to reach 100% fiberisation of towers from the current 38%, and lastly space foreign direct investment (FDI) norms.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.