India’s Telecom Sector Expands Rapidly, Nears 1.2 Billion Subscribers

India’s telecommunications sector has witnessed remarkable growth, reaching 936.16 million internet users by December 2023 and achieving an overall telecom penetration rate of 85.69%, according to recent data.

The country now boasts the second-largest telecom network globally, driven by a surge in wireless and broadband subscriptions, which hit 1,165.49 million and 904.54 million, respectively.  

The total telephone subscriber base expanded to 1,199.28 million as of March 2024, with the wireless segment dominating at 97.2% of total subscriptions. Rural connectivity has also improved significantly, with rural tele-density reaching 59.19%, signaling greater digital inclusion.  

The Digital India program and the Production Linked Incentive (PLI) scheme continue to drive major advancements, particularly in domestic telecom equipment manufacturing and exports. Additionally, the government’s 100% FDI policy in telecom has attracted substantial foreign investments.  

India’s wireless data consumption is on the rise, with average usage per subscriber expected to hit 40GB per month by 2026, up from 14.6GB in FY21. The 5G adoption rate is accelerating, with projections estimating 330 million 5G subscribers by 2026. Simultaneously, India's mobile manufacturing sector is projected to produce devices worth $126 billion by 2025-26.  

The telecom sector has drawn $39.32 billion in FDI between April 2000 and March 2024, reflecting strong investor confidence. Further, the government’s Nyaya Maha Abhiyan, a three-year mission with a ₹24,000 crore outlay, is set to enhance telecom infrastructure and development.  

Internet subscriber growth remains robust, with estimates predicting 900 million users by 2025. Reliance Jio leads the market, followed by Bharti Airtel, Vodafone Idea, and BSNL. India is also making strides in 6G technology through the Bharat 6G Alliance, collaborating with European telecom industry organizations to drive future innovations.  

The expansion of 5G and other emerging technologies has created a significant demand for skilled professionals in the telecom industry. Meanwhile, mobile phone exports continue to rise, strengthening India’s position in the global telecom market.  

With broadband subscriptions skyrocketing from 149.75 million in FY16 to 904.54 million in FY23, India’s digital transformation is in full swing, solidifying its position as a global telecom powerhouse.

Also Read: India’s Telecom Sector Poised for Unprecedented Growth Amid 5G Expansion and Policy Reforms