India is today at the threshold of an extraordinary decade of technological advancement and innovation, well positioned to become a global leader in ICT sector. The sector is gaining recognition for not only its services but is also being recognised for its manufacturing prowess. The ICT manufacturing sector stands at INR 3 trillion in FY22. Overall the sector employs 4 million people.
India is readying itself for an epochal shift to make it a global digital powerhouse. It is focussing on development and adoption of cutting-edge technologies across 5G/6G, Satellite Communication (SatCom) and Semi-conductors. KPMG estimates these three technologies to collectively add approximately USD 240 billion to the nation’s economy in the next five years and estimates it to contribute additional ~1.6 per cent to the national GDP by FY2028.
India followed the world in 4G, marched with the world in 5G and now aims to lead the world in 6G.
Having demonstrated its prowess in mobile manufacturing, India needs to move up the value chain to enhance the domestic value addition in ICT manufacturing. The country needs to transition from an assembly-only approach in electronics to a holistic, integrated, end-to-end manufacturing-led approach.
Through backward integration, Indian companies need to develop niches that will help the country move beyond assembly operations. Until such capabilities are built, the government should focus on getting lowest-cost component manufacturers to set up operations in India.
Recognising the potential in the semiconductor space, the government is working aggressively to enable India to be at the centre stage of global semiconductor supply chain and is offering some of the most attractive incentives globally. In total, India is offering USD 30 billion in support for semiconductors and related industries.
As the ICT sector, including smartphone manufacturing and electronics manufacturing, continues to grow, embracing circular economy principles becomes both an ecological necessity and a strategic decision.
Implementation of the recently passed Digital Personal Data Protection Act (DPDPA) will boost consumer trust, cross-border trade, and lawful processing, and will thus enhance India’s economy and digital innovation.
To create an inclusive, secure, and technologically advanced future for Digital India, it is imperative that governments, businesses, and academia continue to engage in conversations and explore collaborations.
Important to invest in skill development for the workforce, with special focus on skill sets relating to 5G/ 6G, semiconductors and satellite communication.
