Telecom: 10% increase in infra investment will Increase India’s GDP by 3.3%

Dec 06, 2018, 18:19 PM IST
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Impact of Telecommunications Infrastructure on Economic Growth in India: A report Titled Growth Dividends of Digital Communications: The Case for India, released today by Broadband India Forum (BIF) along with Indian Council for Research on International Economic Relations (ICRIER) highlights the impact that (i) mobile and internet penetration  (ii) mobile and internet traffic and (iii) investments in telecommunications equipment have on states, on the country and the corresponding impact on GDP. 

Telecom Infrastructure:

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Mobile Penetration (2001-2018)

Mobile Penetration (2001-2018)

A 10% increase in mobile penetration increases output by 1.9% (Image Source: Reuters)

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Internet subscriber (2001-2018)

Internet subscriber (2001-2018)

A 10% increase in internet subscribers increases states GDP per capita by 3.2% (Image Source: Reuters)

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Internet and Mobile Traffic (2013-2018)

Internet and Mobile Traffic (2013-2018)

A 10% Increase in mobile and internet traffic delivers on an average 1.6% and 3.1% increase in GDP per capita respectively (Image Source: Reuters)

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Investment in telecommunication (2010-2018)

Investment in telecommunication (2010-2018)

A 10% increase in investment in telecom will increase India's GDP by 3.3% (Image Source: Reuters)

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Other Noteworthy Points

Other Noteworthy Points

* Proposed impact of US$100 billion investment envisioned by National Digital Communications Policy 2018 could cumulatively add US$ 1.21 trillion to India’s GDP

* Impact of mobile moderating, the impact of Internet on the rise

* States and regions in India that lag should to be fast tracked in use of Internet, to capture the spillover benefits of digital transformation (Image Source: Pixabay)

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Conference on Digital Infrastructure for Transforming India

Conference on Digital Infrastructure for Transforming India

Releasing the report at the Conference on Digital Infrastructure for Transforming India in New Delhi, Amitabh Kant, CEO Niti Aayog said, “India can become a digitally empowered society and a knowledge economy only by digitally leapfrogging using digital technology and broadband connectivity to enable even higher and sustained growth. (Image Source: Pixabay)

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National Digital Commission & Secretary

National Digital Commission & Secretary

Aruna Sundararajan, Chairperson National Digital Commission & Secretary, Dept. of Telecom, Govt. of India said "India is looking at 100% inclusivity of its citizens through digital empowerment with the Digital India program. This is a very timely report, far reaching in scale and scope, on the impact of telecommunications infrastructure on economic growth. (Image Source: Pixabay)

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Digital investment

Digital investment

Rajat Kathuria, Director and Chief Executive, ICRIER said, "It is hard to imagine India’s future as an economic powerhouse without digital communications being integral to that vision. Already digital investment inspires massive growth dividends. It is expected that the 100 billion dollars envisaged to be invested over the course of NDCP 2018 will contribute over 1 trillion dollars in impact over the lifetime of those investments." (Image Source: Pixabay)

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