Building a Digital Nation: India’s path to progress

Over the past decade, the Indian government has exhibited its commitment and vision to transform India into a digitally empowered society and knowledge economy. A key milestone was the launch of the Digital India programme on July 1, 2015, which focuses on three areas – digital infrastructure for Indian citizens, governance and services on demand, and digital empowerment of citizens.

Telecom has been identified as a critical infrastructure and, since the pandemic, connectivity has achieved a new meaning, placing digitalisation at the heart of nation building.

India’s 5G deployment is expanding rapidly, with almost half the population (49 per cent) expected to be using the technology by the end of the decade, according to GSMA reports. The country now has more than 1.2 billion smartphone connections, making it one of Asia-Pacific’s top three smartphone markets, with adoption set to rise to 95 per cent by 2030.

India’s journey towards becoming a truly digital nation has been fascinating to witness, with policymakers and industry making strides for integrating digital technologies into every sector of the economy. India is well placed to lead the world’s second wave of 5G deployment for the economic benefit of industries as well as society as a whole. It is important that policymakers and the industry come together to realise this potential to its fullest.

GSMA Intelligence has identified five key components for realising the digital nation aspirations of a country – infrastructure, innovation, data governance, security and people.

• Infrastructure: Infrastructure is the foundation of a digital nation, supporting all other components. It includes hard digital infrastructure (such as mobile networks, fibre, satellite connectivity and data centres) and soft digital infrastructure (such as digital ID and electronic payments). India has made significant progress under the Digital India initiative, strengthening both hard infrastructure – including mobile networks, fibre connectivity, satellite communications and data centres – and soft infrastructure, such as digital identity and electronic payments. The BharatNet project is extending fibre connectivity to rural areas, while PM-WANI is expanding public Wi-Fi access. The Aadhaar digital identity system now covers over 1.3 billion individuals and UPI has transformed financial transactions, facilitating over 10 billion payments per month. Additionally, India Stack has established an open digital infrastructure, fostering seamless transactions and financial inclusion.
• Innovation: Innovation drives digital solutions across sectors and is key to a digital nation’s growth. In India, initiatives such as IndiaAI for artificial intelligence (AI) development and Startup India for tech entrepreneurship are fostering innovation. The Open Network for Digital Commerce (ONDC) is transforming e-commerce, while DigiYatra enhances air travel through digital identity.
• Data governance: As countries progress towards becoming digital nations, the large volume of digitised personal data and business information will increase exponentially. Emerging technologies such as AI rely on countless data sets, which individuals and organisations may consider sensitive. Having an applicable data governance policy and standard with embedded data protection principles is crucial to ensure accountability, transparency and trust in a digital ecosystem. India has taken a major step with the introduction of the Digital Personal Data Protection Act and the Draft Rules.
• Security: Cybersecurity is critical as digital nations face growing cyberthreats. India is tackling this with the National Cyber Security Strategy, Cyber Surakshit Bharat and AI-driven fraud detection. The International Incoming Spoofed Calls Prevention System, launched in October 2024, has cut spoofed calls by 90 per cent, with Airtel enabling caller ID for international calls. The Digital Intelligence Platform and Chakshu Facility enhance coordination among telecom operators, law enforcement authorities, banks and social media. AI tool ASTR detects fraudulent SIM registrations, while Airtel, Bharat Sanchar Nigam Limited and Jio deploy AI to prevent scam calls. The Telecom Regulatory Authority of India (TRAI) has also mandated stricter traceability measures to combat telecom fraud.
• People: Digital skills are essential for inclusivity and workforce readiness in a digital nation. India is advancing this through initiatives such as PMGDISHA, which promotes digital literacy, and FutureSkills Prime, which upskills professionals in emerging technologies.

These components are interconnected and must be developed together to avoid potentially costly gaps and delays in the implementation of digitalisation initiatives.

In addition to the above, the task of becoming a digital nation is multidimensional and involves many different actors from the public and private sectors and non-state institutions. In this context, a whole-of-government approach is essential to streamline efforts and achieve efficiencies in the formulation and implementation of digital transformation initiatives. Bringing together multiple stakeholders and diverse resources helps  provide a common solution to an issue. For example, the Centre for Development of Telematics, the technology centre of the Department of Telecommunications (DoT), has formed the India 5G Alliance. This brings together multiple players from industry and academia to undertake collaborative research on the development of local 5G deployment solutions. Similar initiatives in diverse areas are highly recommended.

Towards creating a more enabling climate for investment, innovation and competition

India’s regulatory and policy landscape has undergone major changes, particularly in recent years. One of the most significant regulatory changes in the industry has been the passing of the Telecommunications Act, 2023, which has replaced the Indian Telegraph Act, 1885. A major reform at the foundational level has been a change in the definition of “telecommunications” to reflect technological developments, expanding beyond traditional voice communication. Several improvements have been made in the legislation to streamline and simplify processes for licensing, right of way (RoW), and spectrum allocation and management; and reduce the compliance burden on the industry while encouraging ease of doing business.

A step in the direction of promoting an enabling environment was also the introduction of big-bang reforms in 2021 to provide financial relief to the telecom industry and boost investments. Some of the improvements introduced by way of structural and procedural changes included a four-year break from payment of statutory dues for companies, permission to share scarce airwaves, scrapping of spectrum usage charges, a change in the definition of revenue on which levies are paid and permission for 100 per cent foreign investment through the automatic route.

Streamlining regulatory compliance pertaining to he quality of service

Quality of service (QoS) regulations vary considerably across countries and regions. While there is no one size fits all, competitive advanced markets tend to adopt a light-touch regulatory approach. However, in recent times, there has been a growing trend towards tightening of QoS regulations by regulators. Poor QoS can constrain citizens’ participation in the digital economy. However, failures do not always sit squarely with operators. QoS from the mobile tower to the terminal is also affected by other factors such as consumption patterns, network load, user device (especially counterfeit handsets), weather-related interference, fibre transmission networks and power supply. The availability of spectrum under the right conditions is crucial as well. The latest GSMA report, released in January 2025, elaborates on these. The findings reveal that network deployment policies, such as those around RoW, directly impact QoS. Therefore, regulatory actions designed to improve QoS in mobile communications must focus on promoting the right incentives for operators and avoid increasing the investment gap.

Above average global spectrum reserve prices

Historically, excessively high reserve prices in Indian spectrum auctions have left large amounts of valuable spectrum unsold. The 2022 5G auctions saw some reduction in reserve prices as the DoT, following recommendations by TRAI, reduced reserve prices by about 40 per cent on average across all bands, thereby making the available spectrum more affordable. As a result, more than 70 per cent of the auctioned spectrum was sold, with particularly high sales in high frequency 5G bands such as 3500 MHz and 26 GHz. However, spectrum prices need to be further reviewed as they remain way higher than the global average and will impact the effective deployment of 5G.

Need for a level playing field

Communication today has a new meaning, with greater interconnectedness among all digital ecosystem players, including platform players, mobile network operators and satellite communication service providers. All ecosystem players need to make concerted efforts and contributions towards the upkeep and growth of infrastructure. In addition, they should promote a level playing field and fairness in regulatory treatment, which should be light touch, to meet the growing demand for rapid technological innovation. This requires a higher level of discussion on building the infrastructure needed to support the future vision of Digital India.

India has come a long way in a short span of time, achieving a high level of digital advancement, driven by the commitment of its policymakers and industry. With the implementation of key reforms, the country can fully realise its ambitions and become a digital nation in the truest sense.