Daijiworld Media Network - New Delhi
New Delhi, Oct 9: Mobile network traffic in India is expected to grow by approximately 17 per cent annually between 2025 and 2030, while telecom operators’ revenues are projected to increase by just 2.7 per cent a year, highlighting a widening gap between rising demand and revenue generation, according to a report released by KPMG in India on Friday.
The telecom equipment market in India is projected to nearly double from $25 billion in FY25 to $50 billion by FY32, growing at almost twice the pace of the global market, the report said.
India has already established a strong manufacturing base, with handset production reaching Rs 6,270 billion in FY26. Telecom equipment import substitution has also reached approximately 60 per cent, reflecting the country’s growing domestic manufacturing capabilities.
“The convergence of telecommunications, AI, semiconductors, cloud and digital infrastructure is redefining how value is created in the global technology ecosystem. As the foundation of the digital economy evolves from connectivity to intelligence, India has a unique opportunity to emerge as a creator of globally relevant technologies, platforms and intellectual property,” said Akhilesh Tuteja, Partner and National Leader – Clients and Markets and Technology, Media and Telecommunications (TMT), KPMG in India.
Realising this potential will require sustained investments in innovation, advanced manufacturing and collaboration across the ecosystem to strengthen India’s position as a technology leader in the coming years, he said.
The report noted that the telecommunications industry is moving beyond connectivity towards an intelligent digital infrastructure ecosystem, placing India at a crucial juncture to strengthen its role in the global technology value chain.
The convergence of artificial intelligence (AI), telecom networks, semiconductors, cloud infrastructure, digital services and supportive policy initiatives is creating significant opportunities for innovation, value creation and technology leadership, it said.
Telecommunications is entering a new phase in which connectivity, AI infrastructure and industrial capabilities are becoming increasingly interdependent, according to the report.
While India has demonstrated its ability to build scale in digital infrastructure and manufacturing, the next phase of growth will require greater participation in high-value segments such as semiconductors, software, radio systems, optical technologies and intellectual property, the report added.