Driving digital transformation with 5G-powered IoT innovation in India

By Lt Gen Dr SP Kochhar

The Economic Survey 2025 suggests India has become the second-largest telecommunications market globally, with over 1.18 billion telephone subscribers and 941 million broadband connections as of October 2024. This remarkable expansion in telecom infrastructure has played a crucial role in accelerating the growth of Internet of Things (IoT) services across the country.

India’s telecom industry has experienced remarkable growth, culminating in a rapid transition to 5G technology. By October 2024, the average monthly data consumption per wireless user reached 21.2 GB, with the number of 5G Base Transceiver Station sites crossing the 4.6 lakh mark to meet the growing demand. This swift expansion elevated India’s global mobile broadband speed ranking from 118th to 18th as of January 2025.

The government’s commitment to digital inclusion and substantial investments from major telecom operators have been instrumental in this progress. As the industry moves towards 5G Advanced, it is poised to enhance connectivity further and drive socioeconomic development across the nation.

5G and 5G Advanced: Accelerating IoT adoption

This widespread availability of affordable smartphones and IoT-enabled devices, coupled with advancements in cloud computing, big data analytics and AI-driven insights, has fuelled the rapid adoption of IoT solutions. Additionally, the increasing penetration of high-speed broadband, 5G networks, has provided the necessary connectivity framework for seamless machine-to-machine or M2M communication and real-time data exchange. This IoT adoption can potentially drive efficiency, innovation, and economic growth across various sectors, such as healthcare, agriculture, manufacturing, and smart cities.

The seamless integration of technology fosters innovations in industries like manufacturing, healthcare, agriculture, and smart cities. For instance, 5G-powered IoT devices in agriculture facilitate precision farming by providing real-time data on soil health, weather conditions and crop monitoring, thereby enhancing yield and resource efficiency. Similarly, IoT devices connected via 5G networks in healthcare enable remote patient monitoring and telemedicine services, improving access to medical care, especially in rural areas.

The government’s initiatives to promote digital transformation, coupled with investments from telecom operators, are further propelling the integration of IoT solutions, positioning India to harness the full potential of a connected ecosystem.

Transforming Industries with Connected Ecosystems

India’s strong push for 5G expansion has paved the way for widespread IoT adoption, driving advancements in smart cities and Industry 4.0. With high-speed, low-latency networks, IoT-powered solutions are transforming urban management and industrial automation, making them more efficient, sustainable and data-driven.

IoT plays a crucial role in smart cities by enabling real-time data collection and automation across multiple urban systems, making them smarter and more efficient. AI-driven traffic management optimises signals to ease congestion, while smart public transport enables real-time tracking and automated ticketing for smoother commutes. IoT-powered smart grids enhance energy efficiency and integrate renewables, and intelligent water and waste systems monitor quality, detect leaks and streamline garbage collection. Environmental sensors track pollution levels, aiding proactive interventions, while AI-driven surveillance and emergency systems bolster public safety.

Similarly, smart buildings optimise energy use, and digital kiosks powered by enhanced digital connectivity avenues ensure seamless and uninterrupted connectivity. Together, these innovations are shaping sustainable, technology-driven smart cities. India’s 100 Smart Cities initiative is already driving these innovations, with cities like Pune, Bhopal and Hyderabad implementing command-and-control centres to streamline urban management.

On the industrial front, Industry 4.0 is revolutionising manufacturing and supply chains by integrating technologies like IoT. Factories are increasingly using predictive maintenance, where IoT sensors detect anomalies in machinery, allowing repairs to be scheduled before costly breakdowns occur.

Automated production lines, powered by AI and IoT-enabled robots, enhance precision and efficiency while reducing human errors. Supply chains have become more transparent and responsive with real-time tracking of goods and IoT-driven smart warehouses optimising inventory management. Additionally, industries are leveraging digital twins — virtual models of physical assets that use real-time IoT data to simulate operations and optimise performance.

Advancements, Challenges, and the Road Ahead

As the 5G technology progresses and evolves into 5G Advanced or 5.5G, it will provide ultra-reliable low latency communication—URLLC, ensuring that critical IoT applications, such as autonomous vehicles and industrial automation, operate with minimal delays and high dependability. Furthermore, by incorporating AI and ML, Advanced 5G networks can intelligently manage and optimise IoT device operations, leading to more efficient and responsive systems.

With enhanced capacity and performance improvements, Advanced 5G can handle a vast number of connected devices simultaneously, facilitating large-scale IoT deployments in smart cities and across sectors, including healthcare and agriculture.

However, implementing 5G-enabled IoT solutions in India presents several challenges. One such hurdle is security. The integration of 5G with IoT increases the risk of cyberattacks, as many IoT devices lack robust security features, making them vulnerable entry points for hackers. Furthermore, substantial investment is required for sustainable infrastructure development.

The Indian telecom industry is actively trying to address these challenges. Companies are known to have entered into multi-billion-dollar agreements with global equipment manufacturers to secure and enhance their 4G and 5G network coverage. These partnerships aim to deploy advanced solutions, including centralised radio access networks and Open RAN-ready technologies, to improve network flexibility and performance. The focus is also on developing cost-effective solutions and scalable models to make IoT adoption more accessible for small and medium-sized enterprises.

Driving IoT-Driven Growth in India

The rapid expansion of 5G and Advanced 5G in India is laying the groundwork for a highly connected and intelligent digital ecosystem. This convergence of telecommunications and IoT is set to revolutionise industries, drive innovation and contribute significantly to India’s digital economy.

The Indian telecom industry is working to make these technologies more accessible, particularly for SMEs, through partnerships, investment in AI-driven security frameworks, and scalable IoT solutions. As digital connectivity deepens, India’s digital transformation journey will accelerate, fostering economic growth, innovation, and global competitiveness.

The future of IoT in India, backed by strong telecom infrastructure, is poised for exponential growth, ensuring sustainable progress and technological empowerment across the nation.

The author is a decorated military veteran who retired as Signal Officer-in-Chief, the head of the Indian Army’s ICT. He was also the first CEO of the Telecom Sector Skill Council (TSSC) and is the Director General of the Cellular Operators Association of India (COAI).