India’s telecom sector has moved from expanding basic connectivity to becoming a foundation for digital, economic and technological transformation. Rapid growth in mobile, internet and broadband access, falling connectivity costs and the accelerated roll-out of 5G have widened the reach of digital services across the country. The focus is also shifting towards strengthening domestic manufacturing, developing indigenous technologies and building capabilities that can compete globally. Jyotiraditya M. Scindia, Union Minister of Communications and Development of North Eastern Region, spoke about the sector’s progress, emerging opportunities and key priorities at various industry forums. Edited excerpts from some of his addresses…
Digital transformation
Over the past 10 years, India has seen a digital revolution, moving from a country that was striving to bridge the digital divide to becoming a leading digital nation. Today, India has 1.33 billion mobile subscribers. Internet subscribers, who stood at around 250 million, have grown fourfold to 1 billion. Broadband subscribers have grown from 60 million to almost 1 billion. This growth has come alongside a sharp fall in costs. The cost of broadband, which was around Rs 287 per GB, is today about Rs 8 per GB, with India operating at around 5 per cent of the cost for customers compared to the rest of the world.
Telecommunications today is the pivot around which economic development is focused. The world has seen many new innovations. When railroads and roads were first made, those were visible highways. This is an invisible highway, but it is the pivot around which economic development across the world today is focused.
From services to products
India has to move from being a services-led nation to a product-led nation. The three steps in sequence are value addition, intellectual property (IP) creation and taking Indian products to the corners of the world. To support this transition, the government has created a facilitatory mechanism for IP creators, innovators, entrepreneurs and companies with a long history of product creation to move forward within India.
This transition is already visible in mobile production. From producing only 50 million phones and importing 85 per cent of its requirements, India is today producing 330 million phones. Around 15-20 per cent of Apple’s full production worldwide happens in India, and phones made in India are now being exported to international markets. Mobile phones have also become India’s largest export item. The production-linked incentive (PLI) scheme has supported this transition, with telecom investments of Rs 6 billion, sales of Rs 120 billion, exports of Rs 25.6 billion and the creation of 36,000 jobs.
The focus is on Make in India, Make for the World. India has to move to a product-led nation, and after ensuring value addition and IP creation, the country has to make sure that our flag flies very high on the global firmament, in terms of our products going to all corners of the world.
Building a telecom ecosystem
The first and only telecom manufacturing zone in India is being set up in Gwalior, marking a new chapter in the technological evolution of the country and creating an ecosystem dedicated to the telecom industry. The objective is to provide cutting-edge technology to fuel growth in India as well as the world, with an end-to-end ecosystem covering all aspects of the telecom sector.
Gwalior offers road, rail and air connectivity, an established industrial ecosystem, availability of land with plug-and-play infrastructure, skilled human resources and cost advantages. The city has close to 100 engineering colleges producing around 12,000-14,000 skilled engineers annually in relevant disciplines including electrical engineering and electronics, and communication.
The Ministry of Communications is creating an environment where companies can plug and play, with labs and testing equipment in place. The ecosystem will bring together all six verticals of the industry, including telecom service providers, original equipment manufacturers, optical fibre cable manufacturers, data centre and data equipment manufacturers, semiconductor and chipset manufacturers, active and passive component manufacturers, electronics manufacturing services and printed circuit board manufacturers. The two governments are also working together to address issues and remove bottlenecks, with the objective of establishing Gwalior as a global centre for telecom manufacturing, innovation and exports.
A comprehensive incentive package has also been put together. The central government is investing Rs 5 billion, while the state government is providing land worth Rs 1.7 billion at concessional rates.
The package includes stamp duty reimbursement, capital subsidies, power tariff support at Rs 2 per unit, employment incentives, skill development assistance, research and development incentives, support for green manufacturing, training reimbursement and freight subsidy.
The Government of India and the Madhya Pradesh government are also working together through a special purpose vehicle, with representatives from both governments serving as chairmen.
5G and beyond
India’s 5G roll-out has added another dimension to this transformation. In the past 3.5 years, 500 million users have been able to use 5G. Close to 500,000 towers have been built, with Rs 4.5 trillion in capital expenditure, and today 500 million people are connected. By 2030, the aim is to connect 1 billion people on 5G.
When telecommunications started with 2G, people were connected. With 3G, information was provided. With 4G, a digital ecosystem was created. And with 5G, connectivity has expanded beyond connecting people to providing enterprise and business opportunities across the world. Many use cases will change the way people live their lives.
As the global south moves towards artificial intelligence, satellite communications and 6G technologies, India remains committed to innovation that is trusted, secure, accessible and, most importantly, inclusive. With 6G, physical, digital and intelligence will be combined into one seamless ecosystem. India has a mission to provide 10 per cent of patents for 6G. India is also working to contribute to the standard-setting framework of the International Telecommunication Union and 3GPP through the Bharat 6G Alliance.
Technology for inclusion
Technology should never be an end in itself. It must be the means to an end, and its effectiveness and usefulness ultimately depend on its ability to improve the lives of every single person.
The idea of Digital India is based on two clear foundations – the democratisation of technology and the philosophy of Antyodaya, the service of the last man or woman. Adoption has to be wide and also deep. Value creation must be wide and value creation must be deep. When technology reaches every citizen, it creates opportunity, and when opportunity reaches every citizen, transformation is inevitable.
Digital connectivity is ultimately about connecting people to knowledge, health, education and livelihoods and, most importantly, connecting people to hope. Technology must not only advance, but also expand opportunity, power inclusion and contribute in a fundamental manner to sustainable development.
The Samriddha Gram initiative reflects this idea, with the capability of one unit to provide digital services for governance, banking and healthcare, every capability at the doorstep of the village.
Moreover, handloom weavers, handicraft manufacturers and horticulture growers in the Northeast can connect with international buyers directly through the internet because of bandwidth or through their mobile phones. The job in telecom is to make sure that the intermediary is disintermediated and the artisan and the manufacturer are connected directly to the market.
Digital sovereignty
Digital sovereignty only comes true when there is manufacturing sovereignty. Building a telecom manufacturing ecosystem is, therefore, not merely an economic necessity, but a strategic national imperative, strengthening the broader objectives of Atmanirbhar Bharat and Viksit Bharat 2047.
India has also entered the club of countries with its own 4G stack, becoming the fifth country in the world to have telecom technology after a hiatus of 50 years.
India’s digital public infrastructure has also transformed governance and accelerated economic activity. Aadhaar covers 1.4 billion people, while the Unified Payments Interface (UPI) processes 20 billion transactions a month and 260 billion a year, with close to $3.4 trillion exchanged. UPI is also being exported, with eight countries having integrated the system.
The focus is also on ensuring that every citizen is secure while providing digital services. The Sanchar Saathi portal has recorded almost 25 million downloads and is protecting citizens’ digital sovereignty. New telecom rules have also been brought out, with digital by design and leadership in standard setting.
India’s global role
India today has capabilities in the technologies that are built, the standards that are shaped and the solutions that are provided for the world. The capability, technology and ideas from India must cross borders and go across the world.
India remains committed to innovation that is trusted, secure, accessible and inclusive, towards a much more inclusive global digital future. The broader vision is an environment where knowledge knows no boundaries, partnerships are formed on trust and innovation serves every single citizen across the length and breadth of the world. A radio wave knows no borders. A satellite beam carries no passport. And that is the unity that is sought to be forged across the world.
“India’s broader vision is an environment where knowledge knows no boundaries, partnerships are formed on trust and innovation serves every citizen across the world. A radio wave knows no borders. A satellite beam carries no passport. And that is the unity that is sought to be forged across the world.”
