With the production-linked incentive scheme serving as a catalyst, the subscription base of 5G in India has crossed 130 million and is expected to reach 860 million by 2029, according to a report released Wednesday.
India's telecom industry, with 1.084 billion subscribers, stands second globally.
"The PLI scheme is the primary driver behind the swift expansion of India’s telecom equipment manufacturing sector," noted the report by Prabhudas Lilladher.
A PLI scheme valued at Rs 12,195 crore has been launched to boost the manufacturing of telecom and networking products. Additionally, over Rs 4,000 crore in incentives have been allocated for the design-led manufacturing initiative under the existing PLI Scheme.
Exports of telecom equipment are anticipated to surpass Rs 10,500 crore in the financial year 2025.
"PLI schemes have been instrumental in generating over 19,500 direct jobs," the report highlighted.
The report further mentioned that the ARPU, which stands at Rs 208, is likely to go up to Rs 286 by the end of FY27 on continuous growth in data consumption, hikes in tariffs, and changes in the nature of data consumers to higher-value packages.
India’s overall teledensity now stands at 85.64 percent. The rural market, which remains largely underdeveloped, has a teledensity of 58.92 percent (up from 44 percent in 2014), while the urban market boasts a teledensity of 134.13 percent, the report added.
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