Digital technologies are crucial for India to reach its $5 trillion economic goal by 2024. In 2019, the Ministry of Electronics and Information Technology estimated India’s digital economy at $200 billion, with projections to reach $1 trillion by 2025. This digital ecosystem encompasses various sectors like IT-BPM, telecom, e-commerce, digital payments, and more. However, without a robust telecommunications network, the digital economy’s success is at risk, as noted in the Report of the Task Force on National Infrastructure Pipeline. The COVID-19 pandemic further underscored the importance of digitalization, with remote work and increased online activity revealing the need for improved connectivity and infrastructure.
Despite its significance, the Indian telecom sector faces financial challenges, with operators burdened by substantial debt. This situation limits their ability to invest in enhancing services and adopting newer technologies. A sluggish telecom sector growth not only impacts economic growth but also affects all stakeholders, including operators, infrastructure providers, OTT players, users, and the government. To address this, India must commit to long-term digital economy growth and invest in digital infrastructure. The Department of Telecommunications (DoT) and Telecom Regulatory Authority of India (TRAI) have taken steps to support the sector, but sustained investment and progressive regulations are crucial for achieving the $1 trillion digital economy goal.
Authored by: Ayush Tripathi, Policy Research Associate at The Dialogue; Maanya Vaidyanathan is a Privacy Lawyer, and Trisha Pande is Policy Manager at The Dialogue.
Research Support: Eshani Vaidya and Paridhi Nahata
