100% FDI is allowed in telecom sector (of this upto 49% is allowed through the automatic route and beyond 49% under government route).
Snapshot
Connecting the world
The Telecom industry in India is the second-largest in the world with a subscriber base of over 1.2 bn.
The industry has witnessed exponential growth over the last few years primarily driven by affordable tariffs, wider availability, roll-out of Mobile Number Portability (MNP), expanding 3G and 4G coverage, evolving consumption patterns of subscribers and a conducive regulatory environment.
Indian smartphone users consume maximum data in the world at 9.8 GB per month.
- Total number of Subscriber Identity Module (SIM) connections is expected to reach 1.4 bn by 2020 from 1.1 bn in 2017
- Telecom industry contribution to GDP is expected to reach 8.2% by 2020 from 6.5% in 2017
100% FDI is allowed in the Telecom, wherein upto 49% is allowed through the automatic route and beyond 49% under government route.
For further details, please refer FDI Policy
%
Contribution to India’s GDP
mn
Total employment
mn+
Smartphone users
No. of smart cities
Indian Mobile industry contributed over $ 140 bn to India's GDP in 2015
Digital India is expected to create $ 1.3 tn business opportunity by 2020
Number of internet users in India is expected to reach 829 mn by 2021
- INDUSTRY SCENARIO
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
The Indian Mobile industry is expected to create a total economic value of $217.4 bn by 2020.
The Telecommunications industry is divided into following subsectors: Infrastructure, Equipment, Mobile Virtual Network Operators (MNVO), White Space Spectrum, 5G, Telephone service providers and Broadband.
According to a study by GSMA, smartphones are expected to account for two out of every three mobile connections globally, making India the fourth largest smartphone market by 2020. India is expected to lead in the growth of smartphone adoption globally with an estimated net addition of 350 mn by 2020.
Telecom tower in India is set to boom as its tenancy ration will increase from 1.95 times in 2016 to 2.9 times by 2020 due to the expansion of 3G and 4G and the onset of 5G technologies.
More than 70 companies have received approval from the Department of Telecommunications (DoT) to provide MVNO services. The majority of these companies are focused on Tier 2 and Tier 3 cities
Growth Drivers
Growing demand
Nominal per capita income recorded a CAGR of 10.4% during 2012-17
Increasing internet revenues
Mobile value-added service industry is expected to grow at a CAGR of 18.5% during the period 2015-2020 and reach US $23.0 Billion by 2022
Increased equipment manufacturing
268 mobile and mobile components manufacturing units set up across the country
Make in India
The government announced Phased Manufacturing Program (PMP) to promote domestic production of mobile handsets
Bharatnet project
Optical fiber cables laid over 100,000 gram panchayats
Investible Projects
Investment Opportunities in
- Projects
4
- Opportunity
$663.78 mn
- Promoters
3
- District
3
- Private Projects
1
- Govt. Projects
3
Major Investors
Data On Map
Stakeholders
Government Ministry/ Department
pin
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