India’s telecommunications sector is expected to expand its contribution to the national GDP from the current 12-14 percent to around 20 percent over the next decade, Communications Minister Jyotiraditya Scindia said on October 9.
Speaking at a press conference on the second day of India Mobile Congress 2025, Scindia emphasized that the government’s role in the sector is more about facilitation than regulation, highlighting the highly competitive and largely deregulated nature of the industry.
A significant achievement in India’s telecom journey, Scindia noted, is the development of an indigenous 4G technology stack.
Collaborating with multiple ministries and private-sector partners, India became the fifth country globally to achieve a fully functional 4G stack, completing the feat in just 20 months from concept to deployment.
The minister stated that BSNL will scale up its 4G infrastructure and eventually transition to 5G as the network expands.
Prime Minister Narendra Modi, in his address at the congress a day earlier, called BSNL’s 4G stack a “major milestone” capable of providing seamless connectivity in remote regions and noted that the technology is now “export ready.”
Addressing questions on the Centre’s stake in struggling telecom companies, Scindia said the government currently holds a 49 percent stake in Vodafone Idea and has no immediate plans to increase its share.
Regarding MTNL, he clarified that BSNL has already taken over the operations in Delhi and Mumbai since January 1, though the transfer of assets has not yet occurred.
BSNL reported an operating profit of Rs 2,300 crore in FY24, which rose to Rs 5,100 crore in FY25. Despite this, the state-owned operator has not yet turned net profitable, primarily due to a record capital expenditure of Rs 25,000 crore last year.
The investment supported the installation of 100,000 towers to facilitate BSNL’s 4G rollout.
Scindia also spoke on the Production-Linked Incentive (PLI) scheme for telecom manufacturing, acknowledging that only half of the eligible companies have received benefits so far.
However, he maintained an optimistic outlook, noting that 21 out of 42 manufacturers exceeded their incentive targets.
He stressed that the scheme remains inclusive and that support would be extended to those who have not yet met their goals.
The minister’s remarks underline the government’s continued focus on strengthening India’s digital infrastructure, promoting domestic technology development, and expanding connectivity across urban and rural areas.
With indigenous technology development and large-scale network rollouts, the sector is poised to become a more significant contributor to the country’s economic growth in the coming years.
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