Boosted by the production-linked incentive (PLI) scheme, India’s 5G subscriptions have exceeded 130 million and are projected to reach 860 million by 2029, according to a report released Wednesday.
With a subscriber base of 1.084 billion, India’s telecom industry is now the second largest globally.
“The PLI scheme is the key catalyst in the rapid growth of India’s telecom equipment manufacturing sector,” stated the report by Prabhudas Lilladher.
A PLI scheme valued at Rs 12,195 crore has been launched for the production of telecom and networking products. Additionally, incentives exceeding Rs 4,000 crore have been designated for the design-led manufacturing scheme under the current PLI scheme.
Telecom equipment manufacturing exports are anticipated to surpass Rs 10,500 crore in the financial year 2025.
“PLI schemes have played a crucial role in creating over 19,500 direct jobs,” the report noted.
The report also highlighted that the average revenue per user (ARPU) of Rs 208 is expected to increase to Rs 286 by the end of FY27, driven by sustained growth in data consumption, tariffs, and the premiumisation of existing data users to high-value packs.
India's overall teledensity now stands at 85.64 percent. The rural market, which remains largely untapped, has a teledensity of 58.92 percent, up from 44 percent in 2014, while the urban market boasts a teledensity of 134.13 percent.
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