As per a KPMG report unveiled during the India Mobile Congress 2023, the combined contribution of 5G/6G, satellite communications, and semiconductors to the Indian economy is projected to reach approximately US $240 billion within the upcoming five years. This growth is anticipated to ascend to about 1.6% of the gross domestic product (GDP) by FY28, facilitated by advantageous governmental policies and the presence of a substantial domestic market.
Some of the main policy recommendations comprise the development of regulations and administrative procedures in relation to digital connectivity infrastructure development (DCIP), the shift from an assembly-only strategy in electronics manufacturing to a comprehensive end-to-end approach, and the promotion of low-cost component manufacturers to establish their operations within India.
Furthermore, the suggestions involve leveraging the manufacturing capacity to produce and export 6G equipment to other nations, accelerating efforts to achieve 100% fiberisation of towers from the existing 38%, and addressing space foreign direct investment (FDI) regulations.
In the context of India’s growing prominence in the global telecom sector, the completion of 5G spectrum auctions and structural changes have positioned the nation for a digital revolution. Anticipated to drive a transformation in digital services, 5G is expected to bridge connectivity gaps, enable digitalization across sectors, and foster technological advancements, mentioned the report.
The increased demand on Communication Service Providers (CSPs) emphasizes the need for agile operational transformations to accommodate new revenue streams. For sustainable and inclusive 5G implementation, there is a call for prioritizing the impact on underserved communities and ensuring skill development and research in tandem with infrastructural advancements. Overall, a focus on holistic national growth through enhanced connectivity and technological innovation is vital for realizing the full potential of 5G in India.
