5G/6G, Satellite Communication, and Semiconductors Poised to Inject $240 Billion into India’s Economy Over the Next 5 Years 

As India aspires to become the world’s third-largest economy, cutting-edge technologies encompassing 5G/6G, satellite communication (SatCom), and semiconductors are poised to be instrumental in achieving this goal. Collectively, these three technologies are expected to contribute around $240 billion to the nation’s economy over the next five years and are projected to add approximately 1.6% to the national GDP by FY28. These insights stem from a report jointly released by KPMG in India in partnership with the India Mobile Congress (IMC) 2023. 

While India has demonstrated its capabilities in mobile manufacturing, there is a need to ascend the value chain to enhance domestic value addition within the information and communications technology (ICT) manufacturing sector. The country should transition from a predominantly assembly-centric approach in electronics to a holistic, end-to-end, manufacturing-led approach. Backward integration is crucial for Indian companies to cultivate niches that extend beyond assembly operations. Until such capabilities are developed, the government should focus on attracting low-cost component manufacturers to establish operations in India. 

Yezdi Nagporewalla, CEO of KPMG in India, emphasized, “India’s digital economy is experiencing remarkable growth, driven by the continuous evolution of the information and communications technology (ICT) manufacturing sector. India’s forward-looking 6G vision document positions the nation at the forefront of global technology. Leveraging its demographic advantage and technological progress, India can emerge as a reliable global digital leader through cooperative efforts in digital literacy, cybersecurity, new technologies, and export promotion.” 

The report offers several recommendations for India’s telecom future in the context of 5G technology. It underscores the significance of an effective partner ecosystem to enable communication service providers (CSPs) to meet their customers’ evolving requirements with comprehensive solutions involving 5G and other advanced technologies. Furthermore, it calls for the development of regulations and administrative processes within the digital connectivity infrastructure development (DCIP) framework. 

In terms of infrastructure, the role of infrastructure providers must adapt to cater to the evolving needs of 5G, covering aspects such as fiber capacity, optical transport, tower count, 5G repeaters, edge sites, small cells, and distributed antenna systems (DAS) for indoor and outdoor solutions. Moreover, the deployment of 5G technology necessitates a highly skilled workforce capable of managing and maintaining the intricate network infrastructure. 

The report underscores India’s journey in the realm of telecommunications, noting that the country followed the world in 4G, advanced in parallel with the world in 5G, and now aims to lead the world in 6G. To expedite the 6G revolution, India should continue investing in research and development activities to contribute to the progression of 6G technology, bolster the global knowledge base, and play a pivotal role in shaping the future of this technology. 

The report also highlights the significant potential in the semiconductor sector, recognizing the government’s determined efforts to position India at the core of the global semiconductor supply chain. The Indian government is offering some of the most attractive incentives globally, with a total of $30 billion earmarked for supporting semiconductors and related industries. 

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