India’s telecommunications sector has witnessed remarkable expansion, with internet users reaching 936.16 million by December 2023 and telecom penetration hitting 85.69%.
The country now boasts the world’s second-largest telecom network, driven by a surge in wireless and broadband subscriptions, standing at 1,165.49 million and 904.54 million, respectively.
The sector continues to attract strong foreign investments and advances rapidly in 5G and 6G technologies.
By March 2024, India’s total telephone subscriber base had grown to 1,199.28 million, with wireless services accounting for 97.2% of total subscriptions.
Rural connectivity has also improved significantly, with rural tele-density rising to 59.19%, showcasing increasing digital reach across various regions.
The Digital India program and the Production Linked Incentive (PLI) scheme are major contributors to the sector’s expansion.
The PLI initiative is aimed at boosting domestic telecom equipment manufacturing and exports, while 100% FDI approval has further strengthened the sector.
Wireless data usage will likely surge, with average consumption projected to hit 40GB per month by 2026, a notable rise from 14.6GB per month in FY21.
The country’s 5G adoption is accelerating, with an estimated 330 million 5G subscribers by 2026.
India’s mobile manufacturing sector is also on the rise, with production value set to reach $126 billion by 2025-26.
Foreign Investments & Infrastructure Development
Foreign Direct Investment (FDI) in the telecom sector has touched $39.32 billion between April 2000 and March 2024, underlining global confidence in India’s telecom market.
The recently launched Nyaya Maha Abhiyan, a three-year government initiative with a Rs 24,000 crore budget, is set to bolster telecom infrastructure alongside other developmental projects.
The internet subscriber base is likely to surpass 900 million by 2025, with wireless broadband being the main driver.
Reliance Jio continues to dominate, followed by Bharti Airtel, Vodafone Idea, and BSNL.
India is also progressing in 6G technology through the Bharat 6G alliance, forming strategic partnerships with European telecom organizations.
As the sector evolves, demand for skilled professionals in emerging technologies like 5G is rising, reflecting the rapid digital transformation underway.
The broadband subscriber base has however soared from 149.75 million in FY16 to 904.54 million in FY23, highlighting the country’s fast-paced digital adoption.
Meanwhile, mobile phone exports have surged, cementing India’s role in global internet traffic and digital connectivity.
The government continues to support this growth through policy reforms and infrastructure development.
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