According to the Economic Survey of India 2023-24, India is amongst the fastest growing 5G networks in the world, and its international rank on mobile broadband speeds has decreased from 118 to 15 in March 2024, post the launch of 5G services.
The survey highlighted that the telecom technology development requires significantly large and patient capital for research and development (R&D), commercialisation and to bolster India’s position in the global telecom sector. To address this, the government has decided to allocate 5 per cent annual collections from the Universal Services Obligation Fund (USOF) to fund R&D in the telecom sector, which is the gateway to accelerate the development of future technologies.
It mentioned that India’s overall tele density (number of telephones per 100 population) has increased from 75.2 per cent in March 2014 to 85.7 per cent in March 2024. Meanwhile, the number of wireless telephone connections stood at 1.165 billion as of March 31, 2024. Moreover, 6,83,175 kms of optical fibre cable have been laid, connecting 2,06,709 gram panchayats in phases I and II. In addition, as per Telecom Technology Development Fund (TTDF), there has been a significant participation from start-ups, micro, small and medium enterprises (MSMEs), academia and industry.
The survey highlighted that while India may not be an immediate beneficiary of the trade diversion from China, it has witnessed a substantial increase in electronic exports over time with production-linked incentive (PLI) scheme being a key driver.
The survey added that the domestic production of electronic items increased significantly to Rs 822 billion, while exports rose to Rs 190 billion in FY23. Further, Apple assembled $ 14 billion worth iPhones in India during FY24, constituting 14 per cent of its global iPhone production. Furthermore, the share of electronics goods in merchandise exports of India increased to 6.7 per cent in FY24 as compared to 2.7 per cent in FY19. India’s electronic exports to the US have transitioned from a trade deficit of $ 0.6 billion in FY17 to a trade surplus of $ 8.7 billion in FY24.
It added that substantial manufacturing capacities have been established in India over the past five years and many major foreign and domestic companies have either established their own manufacturing facilities or have outsourced manufacturing to electronics manufacturing services companies operating in India. Moreover, India ranks second globally in telecommunication, computer, and information services exports, further cementing its position as a key player in the digital economy.
