Digital economy to hit 20% of India’s GDP by 2035; Telecom Policy’25 still in draft stage: Govt tells Lok Sabha
India’s next big telecom roadmap is taking shape—just not finalized yet. The government has told the Lok Sabha that the National Telecom Policy ’25 (NTP-25) remains in draft, but its ambitions are clear: ramp up nationwide connectivity, catalyze domestic manufacturing, and prepare the ecosystem for advanced technologies like 5G, 6G, satellite communications, IoT, AI, and quantum networks. With these pillars, the digital economy’s contribution to GDP is projected to climb from roughly 12–14% today to about 20% by 2035.
What the draft policy is aiming for
- Coverage targets: near-universal 4G by 2030 and 90% 5G coverage in the same timeframe.
- Innovation push: elevate India into the top tier of global hubs for telecom R&D across 6G, AI-driven networks, IoT, and quantum communications.
- Jobs and growth: enable around one million new opportunities across networks, devices, manufacturing, and services.
- Made-in-India momentum: expand local value addition in telecom and satellite equipment via incentives such as production-linked schemes, with a focus on underserved districts.
- Ease of doing business: streamline regulation, encourage private capital, and make it simpler for startups and manufacturers to deploy and scale.
Rural, remote and tribal connectivity at the core
Even as the policy is being shaped, the rollout machine hasn’t paused. Under projects supported by the Digital Bharat Nidhi (DBN), programs such as BharatNet, 4G saturation in uncovered villages, and dedicated builds in Left-Wing Extremism–affected regions are moving ahead to reduce the last-mile gap.
One example: 2,644 telecom towers are planned across rural Maharashtra, expected to reach about 3,156 villages and extend fiber to all gram panchayats in scope. Similar initiatives are geared toward remote and tribal belts to ensure that digital public services, education, telemedicine, and commerce can ride on dependable broadband.
Digital economy: from momentum to maturity
According to the government’s briefing, the digital economy currently contributes an estimated 12–14% to GDP. With wider 4G/5G access, next-gen infrastructure, and greater private participation, that share is anticipated to approach 20% by around 2035. The trajectory will hinge on several factors: speed of technology adoption, pace of fiber and 5G/6G deployment, macroeconomic conditions, and capital investment from both domestic and global players.
How the rollout could be managed
Once NTP-25 is finalized, it is expected to set out clearer frameworks for spectrum, infrastructure sharing, licensing simplification, and mechanisms to monitor progress on coverage, quality of service, and affordability. The intent is to align policy with execution: drive access, protect consumer interests, and spur innovation without piling on regulatory friction.
Why this matters for gaming and XR
For India’s fast-growing gaming and immersive tech sectors, connectivity policy is not just background noise—it’s foundational.
- Cloud gaming and esports: Wider 5G with lower latency improves responsiveness and enables competitive play on mobile and fixed wireless, expanding the audience beyond urban centers.
- XR and virtual production: High-bandwidth, low-latency networks, paired with edge computing, unlock smoother AR/VR experiences, remote collaboration, and real-time rendering for creators and studios.
- Distribution at scale: Better rural coverage grows the addressable market for free-to-play titles, subscriptions, and ad-supported models, while also improving payment reliability and digital storefront reach.
- Domestic hardware ecosystem: A stronger manufacturing push can stimulate components and devices for 5G CPEs, headsets, and accessories, reducing import dependence and encouraging local R&D.
The big picture
NTP-25 is being designed to move India from patchy connectivity to pervasive, high-quality networks that support advanced services—even in difficult terrains. The policy’s success will rely on seamless execution of DBN-backed projects, predictable regulation, and a thriving private sector eager to invest. If those pieces align, India’s digital economy could expand markedly by 2035—lifting not just fintech and e-commerce, but also the country’s gaming, streaming, and AI-driven creative industries.
For now, the message is simple: the blueprint is nearly there; the buildout continues; and the targets are as ambitious as the market they seek to serve.
