Snapshot
Connecting the World
The Telecom industry in India is the second largest in the world with a subscriber base of 1.2 Bn as of Aug 2024 (wireless + wireline subscribers). India has an overall tele-density of 85.43%, of which, the tele-density of the rural market, which is largely untapped, stands at 59.05% while the tele-density of the urban market is 132.94%.
By the end of Jun 2024, the total number of internet subscribers increased to over 969 Mn (narrowband + broadband subscribers), out of which 42% of the internet subscribers belonged to the rural areas. The average monthly data consumption per wireless data subscriber has also increased to 17.36 GB GB in Mar 2023 from 61.66 MB in Mar 2014.
The industry’s exponential growth over the last few years is primarily driven by affordable tariffs, wider availability, roll-out of Mobile Number Portability (MNP), expanding 3G and 4G coverage, evolving consumption patterns of subscribers, Government’s initiatives towards bolstering India’s domestic telecom manufacturing capacity, and a conducive regulatory environment.
To further expedite digital connectivity, the Government has approved the auction of IMT/5G spectrum for deployment of 5G services within the country. This auction was successfully held by the end of Jul 2022 and grossed $18.77 Bn.
The Telecom sector is the 4th largest sector in terms of FDI inflows, contributing 6% of total FDI inflow, and contributes directly to 2.2 Mn employment and indirectly to 1.8 Mn jobs.
For further FDI details, please refer to FDI Policy read with Press Note. 4.
- Mn
Broadband Connections (as on 31st Aug 2024)
- Mn
Total employment
- Mn+
User Base of 5G
No. of smart cities
India currently has the world’s second-largest subscriber base of 1.09 Bn.
Active internet users in India are more than 969 Mn.
India is aiming to manufacture mobile phones worth $126 Bn by 2025-26.
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
Tele-density, which denotes the number of telephones per 100 population, is an important indicator of telecom penetration.
The Telecommunications industry is divided into following subsectors: Infrastructure, Equipment, Mobile Virtual Network Operators (MNVO), White Space Spectrum, 5G, Telephone service providers and Broadband.
As per GSMA, India is on its way to becoming the second-largest smartphone market globally by 2025 with around 1 Bn installed devices and is expected to have 920 Mn unique mobile subscribers by 2025 which will include 88 Mn 5G connections. It is also estimated that 5G technology will contribute approximately $450 Bn to the Indian Economy in the period of 2023-2040.
India added over 500 Mn new smartphone users over the last decade. We are expected to have 850 Mn smartphone users by 2026, representing ~55% of the total population.
Under the Union Budget 2024, The Government of India proposed to increase the Customs duty from 10 to 15% on PCBA of specified telecom equipment to incentivise domestic manufacturing. Further, the Basic Custom Duty on mobile phone, mobile Printed Circuit Board Assembly (PCBA) and mobile charger reduced to 15%.
The DoT is targeting a combination of 100% broadband connectivity in the villages, 70% fiberisation of towers, average broadband speeds of 50 Mbps and 50 Lakh kms of optic fibre rollouts at a pan-India level by Dec 2024.
- India is placed at 60th rank as per Network Readiness Index 2023
- India secures 2nd rank in “Mobile broadband internet traffic within the country” and “International Internet bandwidth”.
- Internet connections jumped from 251.5 Mn in Mar 2014 to over 969.6 Mn in Jun 2024.
- Average revenue realization per subscriber per GB wireless data reduced to INR 9.94 in March, 2023 from INR 268.97 in December 2014, a reduction of more than 96.30%.
- India secures 3rd rank in “Annual investment in telecommunication services” and “Domestic market size”.
- 5G network has been rolled out in all 28 states and 8 UTs.
- India, in terms of median mobile broadband speed, has reached 43rd position.
- Total telephone connections rose to 1200.07 Mn in Aug 2024 from 933 Mn in Mar 2014, with a growth of 28.62 % in the said period. The number of MNP requests submitted were 14.66 Mn in Aug 2024.
- Urban telephone connections rose to 666.48 Mn in Jul 2024 from 555.2 Mn in Mar 2014, a growth of 20% while the growth in rural telephone connections was 41.2%, which is double of urban increase, rising from 377.8 Mn in Mar 2014 to 533.49 Mn in Aug 2024. The rural tele-density jumped from 44% in Mar 2014 to 59.05% in Aug 2024.
GROWTH DRIVERS
PLI Schemes under Atmanirbhar Bharat Abhiyan
Production Linked Incentive (PLI) Scheme worth INR 12,195 Cr for manufacturing of telecom and networking products. Incentives worth more than INR 4,000 Cr have been earmarked for the Design Led Manufacturing Scheme of the existing PLI Scheme.
Telecom Sector Reforms
In 2021, large scale structural and procedural reforms have been brought in to enhance liquidity and minimise financial stress within the telecom sector.
Bharatnet project
Under the BharatNet Project 1,77,550 Gram Panchayats (GPs) have been made service ready till June 2022. Scope of BharatNet Project has been extended to all inhabited villages in the country.
India is one of the highest consumers of data per day
India is one of the highest consumers of data per day with approximately 5 hours of daily time spend on smartphones.
Prime Minister Wi-Fi Access Network Interface (PM-WANI)
Provision of public Wi-Fi service through Public Data Offices (PDOs) spread across the country to accelerate the expansion of broadband internet services.
Production Linked Incentive (PLI) Scheme
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi had given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Telecom & Networking Products sector for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat. In June 2022, the Department of Telecommunications (DoT) amended the guidelines for PLI Scheme to introduce Design-led Manufacturing Scheme as part of the PLI Scheme with additional incentives worth more than INR $533.33 Mn. Applications closed on 20th July 2022. Achievements: • Total 31 applicants have been approved under the Scheme, out of which 16 are MSME, 8 Non- MSME (Domestic) and 7 Non-MSME (Global). These companies are expected to invest $450 Mn, generate 40,000 jobs and incremental production of over $24.4 Bn throughout the tenure of the PLI Scheme. • INR 1330 Cr investments has been generated till Feb 2023.
INR 12,195 Cr
Scheme Outlay
Ministry
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
Investible Projects
Investment Opportunities in Telecom
Data On Map
Gallery
