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India, the fifth largest economy in the world, has set an ambitious goal of becoming a five trillion dollar economy in the coming years. According to a report by global consultancy firm KPMG, new industries relying on fifth-generation mobile telephony services, satellite communication-based services, and micro-processors will play a significant role in driving India’s economy in the next five years. The combined value addition by these services is estimated to be around 0 billion.

The report emphasizes the transformational potential of fifth-generation (5G) services, which are based on satellite communication and micro-processors. Prime Minister Narendra Modi launched 5G mobile services in India in October 2020, and the country has since witnessed a rapid rollout of 5G, with a subscriber base of 100 million. The KPMG report projects that these new industries will contribute to 1.6% of India’s GDP by March 2028.

India’s telecom market, currently valued at Rs 3,000 billion, is expected to grow at a compound annual growth rate of 7-9% by the next financial year. This growth will also lead to a significant boost in employment generation. Currently, around 4 million people are employed in the telecom sector, both directly and indirectly. The report predicts that employment in the sector will exceed 6 million in the next three years, driven by the adoption of cutting-edge technologies like IoT, 5G, and 6G.

India is also working towards developing its own 6G network, as part of the country’s self-reliant India (Atma Nirbhar Bharat) scheme. By December 2023, Jio Infocomm, a major player in the telecom sector, plans to offer 5G services across the country. The KPMG report highlights the employment generation potential of 5G mobile services-based industries, estimating a 40% increase in hiring in the telecom and related sectors.

India’s faster rollout of 5G services has also led to significant improvements in download speed, according to a recent report by Ookla. India’s rank in download speed jumped 72 places, securing the 47th spot globally. Indian consumers are among the highest data users per capita globally, consuming an average of 19.5 GB of data per month. It is projected that this number will reach 62 GB by 2028.

Furthermore, the KPMG report notes that rural smartphone ownership has doubled between the pre-Covid era and 2023. With 358 million rural users out of India’s total 759 million users, the rural internet penetration rate is expected to reach 56% by 2025. The report also discusses spectrum allocation and permits spectrum usage without auction as an example from Germany.

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