India’s telecom sector is undergoing a structural shift marked by rapid 5G expansion, rising exports, and a decisive push towards satellite-based connectivity. Data presented in Parliament underscores how policy reforms, domestic manufacturing, and strategic regulation are reshaping the sector from a largely import-dependent market to an emerging global player.
What the Government Told Parliament
The Communications Minister informed the Lok Sabha that India’s telecom exports have grown sharply over the last five years, while imports have remained broadly unchanged. Telecom exports rose from about ₹10,000 crore in 2020–21 to ₹18,406 crore in 2024–25, a growth of 72%. In contrast, imports have stayed capped at around ₹51,000 crore during the same period. This divergence is being projected as evidence of increasing domestic capacity and reduced external dependence in telecom equipment and services.
Why Telecom Exports Matter for Self-Reliance
Telecom is a strategic sector with implications for economic growth, national security, and digital inclusion. Rising exports indicate:
- Strengthening of domestic manufacturing under initiatives such as Production Linked Incentive (PLI) schemes.
- Improved global competitiveness of Indian telecom equipment and solutions.
- Gradual movement towards Atmanirbhar Bharat in high-technology sectors.
Stable imports alongside rising exports also suggest import substitution rather than mere expansion of trade volumes.
India’s Rapid 5G Rollout and Subscriber Growth
India’s 5G deployment has progressed at an unusually fast pace by global standards. Out of 778 districts, 767 have already been connected to 5G networks. Subscriber numbers stand at around 36 crore and are projected to reach 42 crore by 2026 and nearly 100 crore by 2030. This scale of adoption has implications for digital services, industrial automation, smart infrastructure, and the broader digital economy.
The Role of SATCOM in Bridging Connectivity Gaps
Satellite communication has been identified as critical for areas where terrestrial networks—such as mobile towers, optical fibre, or broadband backhaul—are economically or geographically unviable. Remote, border, island, and disaster-prone regions fall into this category. The government’s objective is to ensure that consumers have access to a full range of telecom services and can choose solutions based on need, geography, and affordability.
Policy Framework for Satellite Communications
India’s SATCOM policy framework is now largely in place. Spectrum for satellite services is to be assigned administratively rather than through auctions. Licences have already been issued to three operators—Starlink, OneWeb, and Reliance. However, commercial rollout depends on two pending steps:
- Finalisation of spectrum pricing and administrative charges by the Telecom Regulatory Authority of India (TRAI).
- Completion of security clearances by enforcement agencies, including compliance with requirements such as hosting international gateways within India.
Operators have been given sample spectrum to conduct demonstrations and are currently undergoing compliance processes.
Broader Implications for India’s Digital Strategy
Together, rising exports, near-universal 5G coverage, and the introduction of SATCOM services point to a more diversified and resilient telecom ecosystem. These developments strengthen India’s position in global telecom value chains, support Digital India objectives, and enhance strategic autonomy in critical communication infrastructure.
What to Note for Prelims?
- Growth in telecom exports: ₹10,000 crore (2020–21) to ₹18,406 crore (2024–25).
- Imports stable at around ₹51,000 crore.
- 5G coverage in 767 out of 778 districts.
- Key SATCOM players licensed: Starlink, OneWeb, Reliance.
- TRAI’s role in spectrum pricing and regulation.
What to Note for Mains?
- Link between telecom self-reliance and Atmanirbhar Bharat.
- Strategic importance of 5G and SATCOM for inclusive connectivity.
- Regulatory challenges in spectrum assignment and security clearances.
- Implications of telecom export growth for India’s global technological standing.
