According to a report presented during the India Mobile Congress 2023 by KPMG, the combined contributions of 5G/6G technology, satellite communications, and semiconductors are projected to infuse approximately US$ 240 billion into the Indian economy within the next five years. This growth is expected to represent approximately 1.6% of the country’s gross domestic product (GDP) by the fiscal year 2028. This optimistic outlook is attributable to favorable government policies and the substantial domestic market.
The report’s policy recommendations encompass several critical aspects. Firstly, it suggests the development of regulations and administrative processes related to digital connectivity infrastructure development (DCIP). Additionally, there is a proposed shift from the prevailing assembly-only approach in electronics manufacturing to an encompassing end-to-end strategy. Encouragement is also extended to low-cost component manufacturers to establish operations within India, fostering local industry growth.
Furthermore, the report advocates for harnessing India’s manufacturing capacity to produce and export 6G equipment to global markets, leveraging the country’s technological prowess. To ensure rapid progress, the plan to achieve 100% fiberization of communication towers, which currently stands at 38%, is recommended for expedited implementation. Lastly, the report calls for revisions to space foreign direct investment (FDI) regulations to further bolster India’s technological and economic advancements.
