Driving transformative shifts towards digital leadership

India’s telecommunications sector has emerged as a powerful force on the global stage, positioning the nation as a potential leader in the digital infrastructure revolution. With the world’s second-largest telecom market contributing 6.5% to its GDP and projections indicating a market value of USD 69.62 billion by 2029, the country’s digital transformation is gaining momentum through strategic cross-sectoral collaborations and innovative initiatives.

India’s digital infrastructure has witnessed remarkable growth, with its telephone subscriber base reaching 1,203.69 million as of October 2024. The country’s extensive network infrastructure now includes 8.11 lakh towers and an impressive 41.26 lakh kilometres of fibre optic cable coverage.

This robust foundation supports 99% 4G coverage across 600,000 villages and hosts approximately 442,000 5G base stations, demonstrating India’s commitment to comprehensive digital connectivity.

Transformative Initiatives

Driving Growth

The government’s proactive approach has been instrumental in fostering cross-sectoral collaboration. The National Digital Communications Policy 2018 and Digital India program have set ambitious targets to attract USD 100 billion in investments. The recent Telecommunication Act 2023 and ROW Rules 2024 have modernised the regulatory framework, creating an environment conducive to technological innovation and business growth.

The Production Linked Incentive (PLI) scheme, with an allocation of Rs 12,195 crore, has already shown remarkable results in transforming the sector. The scheme has successfully generated over 23,857 direct employments while attracting investments of Rs 3,850 crore. It has achieved total sales exceeding Rs 50,000 crore and significantly reduced import dependency by 60% in critical equipment sectors, marking a substantial step toward self-reliance in telecommunications.

Game-Changing Digital

Public Infrastructure

India’s Digital Public Infrastructure (DPI) has emerged as a game-changer in fostering cross-sectoral collaboration. Integrating digital identity systems, payment interfaces, and data exchange platforms has created a standardised and interoperable digital backbone. The system has achieved remarkable milestones, with UPI facilitating 50 billion telecom transactions in 2023, Aadhaar-based e-KYC enabling instant activation for 95% of new connections, and DigiLocker integration reducing document query time by 40%.

The rapid 5G deployment, with two lakh sites covering over 700 districts within eight months, showcases the country’s technological capabilities. India is projected to have 350 million 5G subscriptions by 2026, accounting for 27% of all mobile subscriptions. This growth is complemented by initiatives to develop 6G technology, as outlined in the Bharat 6G vision document, demonstrating India’s commitment to staying at the forefront of technological advancement.

Cross-Sectoral Integration and Growth

The telecommunications sector’s growth has catalysed collaboration across various sectors. Significant progress in smart city integration has been made with 7,296 completed projects, an investment of Rs 1,46,427 crore, and the successful integration of 5G technology with urban infrastructure. Also, rural development has seen major strides through the BharatNet project connecting 2,14,279 gram panchayats. At the same time, the USOF scheme has deployed over 8,055 mobile towers in underserved areas, achieving a rural teledensity of 59.59%.

Similarly, the excellence in manufacturing has been demonstrated through telecom equipment exports worth Rs 25,200 crore, with domestic manufacturing meeting most of the 5G demands and developing a robust local supply chain ecosystem.

Challenges and Future Opportunities

Despite significant progress, several challenges must be addressed for India to cement its leadership position. Infrastructure development requires increased tower density, achieving universal broadband connectivity goals of 50 Mbps by 2029, and solving last-mile connectivity issues in remote areas.

Workforce development presents another crucial challenge; by 2025, the country will require 22 million skilled workers in 5G-centric technologies and training needs in the Internet of Things, Artificial

Sustainable development and advanced R&D policies will shape India’s journey to becoming a global leader in digital infrastructure.

 Intelligence, robotics, cloud computing, and the development of a robust innovation ecosystem.

India must focus on multiple aspects to realise its potential as a global leader in digital infrastructure. Sustainable development needs attention through promoting renewable energy in telecom infrastructure, reducing carbon footprint while maintaining reliability, and ensuring cost-effective service delivery in remote areas.

Innovation and research require establishing regulatory sandboxes, simplifying experimental license processes, and supporting advanced technology adoption. Policy support must be strengthened through implementing tax incentives, streamlining approval processes, and enhancing research and development support.

India stands at a crucial juncture in its digital transformation journey. The country is well-positioned to lead the global digital infrastructure revolution with its robust infrastructure foundation, innovative DPI framework, and successful cross-sectoral collaborations. Combining government initiatives, private sector participation, and technological advancement creates a unique ecosystem for sustainable growth and innovation.

As the country strengthens its digital infrastructure and fosters cross-sectoral partnerships, its journey from being the world’s second-largest telecom market to a global leader in telecommunications appears increasingly achievable. The key to success lies in maintaining innovation momentum while addressing challenges through collaborative solutions and sustainable practices.

By Manoj Kumar Singh

The author is the Director General of the Digital Infrastructure Providers Association (DIPA).

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