Jeanette Whyte, Head of Public Policy APAC, GSMA
India is one of the largest and fastest growing digital economies in the world, with more than half a billion internet subscribers. The Indian government launched the Digital India programme in 2015 to transform the country into a digital society and economy. The Covid-19 pandemic underscored the critical role of connectivity, leading to a renewed focus of policymakers and encouraging them to accelerate 5G roll-out and take supportive measures.
As per GSMA Intelligence analysis, the Indian economy could see a benefit of Rs 36.4 trillion ($455 billion) from 5G technology between 2023 and 2040, or more than 0.6 per cent of the GDP forecast for 2040. There are a large number of 5G use cases that could be implemented in the main sectors of the Indian economy. 5G benefits are expected to be realised in key sectors like manufacturing (representing 20 per cent of the total benefit), retail, information and communication technology, and agriculture. The services sector, particularly healthcare and education, is also expected to see benefits from 5G, driven by smart city and smart governance applications.
The number of 5G connections globally is estimated to reach 5 billion by the end of 2028. Most regions will have 50 per cent or more standalone 5G networks in the next few years. As per the GSMAi Digital Societies Index, India is on a transitional path to becoming an advanced digital society based on its measure of connectivity, digital citizenship, digital identity, digital lifestyle and digital commerce.
The GSMA APAC Digital Societies Report 2022 focuses on the concept of “digital nations”, referring to the aspirations of governments across Asia Pacific to integrate digital technologies and services into every sector of the economy. This makes digitalisation the core element of nation building, and the means to achieving sustainable and inclusive economic growth. The key components of a digital nation are infrastructure, innovation, data governance, security and people.
The Indian government has taken several initiatives, such as amending the Right of Way Policy, working towards a framework for small cell deployment on street furniture, and lowering the reserve price of spectrum in 5G auctions. To fully realise India’s potential as a telecom superpower, greater attention must be given to key areas such as spectrum policy and framework, infrastructure deployment, innovation and inclusion.
India needs to emerge as a global spectrum leader by designing a clear spectrum roadmap, ensuring the availability of adequate backhaul spectrum and assuming global leadership through decisions at the World Radiocommunication Conferences 2023 (WRC-23). The 6 GHz range is a core component of the spectrum that is needed to guarantee the future quality and affordability of 5G. WRC-23’s success, therefore, will depend on its ability to secure the future of 5G through the identification of 6 GHz spectrum for International Mobile Telecommunications. Increasing the capacity for mobile at WRC-23 will lead to the delivery of better services from less dense, less costly networks, thus reducing the usage gap while driving scale and further investment.
The uniform implementation of the Right of Way Rules, 2022, global harmonisation of its electromagnetic field standards with the global International Commission on Non-Ionizing Radiation Protection standards, and increased flexibility of passive and active infrastructure sharing would significantly contribute to infrastructure deployment.
5G is at the heart of the digital infrastructure component, with the potential to reshape the economy by enabling new operating models for businesses and transforming the way citizens interact with society and the environment around them. To maximise the opportunity, policymakers in India should take steps to develop, through collaboration, the components of a digital nation, incentivise innovation, and ensure the financial sustainability of the mobile industry.
India has made significant progress on its digital journey, particularly with the growth of mobile internet over the last decade. However, there is still a huge digital divide in the country, which excludes a large population from the digital economy and its social and economic benefits. The number of connected adults in India has grown, but a third of those with access to mobile broadband do not use the service. There is also a large gender gap in mobile ownership (14 per cent) and mobile internet usage (41 per cent), with a lack of awareness and digital skills being major barriers to mobile internet adoption among women. Addressing these challenges should be a top priority for stakeholders to ensure that every citizen is able to participate in India’s growing digital economy.
India’s digital transformation journey has been remarkable. According to a recent report by the Reserve Bank of India, India’s digital economy grew 2.4 times faster than the Indian economy in 2022. India’s G20 presidency, starting in December 2022, presents a valuable opportunity for India to lead governments globally in incorporating digitalisation into their nation-building efforts.
