The billion dollar impact of 5G on the Indian economy
In a report on India’s digital revolution, the GSMA specifically focuses on the impending implementation of 5G services and their potential economic implications. According to GSMA analysis, 5G is likely to bring 36.4 trillion rupees ($455 billion) to the Indian economy between 2023 and 2040.
Manufacturing (around 20% of the total gain), retail (12%), agriculture (11%) and other industries stand to benefit from 5G technology.
By 2030, 5G will account for more than a third of all connections in India, with 2G and 3G accounting for less than 10%. He also pointed out that India’s high 4G adoption rate (79%) shows a prepared subscriber base for change.
A third of people served by mobile broadband networks in India are not yet using the service, although the percentage of connected adults (those over 18) has increased. The report says the biggest barrier remains a lack of technology and reading skills.
Additionally, there is a significant gender disparity in mobile device ownership and mobile internet usage. The gender disparity in cell ownership is only 14%, but it reaches 41% when it comes to mobile internet use. According to the study, one of the main obstacles to the adoption and use of mobile internet by women is the lack of technical knowledge and capacity.
“Speaking at the Telecom Regulatory Authority of India’s Silver Jubilee celebrations, Modi predicted that 5G would not only increase internet speeds but also rapidly bring about economic improvement and spur the creation of (Trai) To speed up the introduction of 5G, he also called for greater commitment from industry and government.
Growth of 5G
The fact is that it will take us several years to create hundreds of billions of dollars of infrastructure on the ground in a nation the size of India. At this point, digital infrastructure comes into play to accelerate growth across all industries. Our current generation of technologies, including wearables and smartphones, will soon be integrated into the global Internet ecosystem and other service providers. More importantly, these will be interconnected with many national and international domains and markets.
With over 560 million internet subscribers, India is the second largest and fastest growing market for digital consumption after China. This is according to recent data from McKinsey. The government is still working to expand it, and a milestone has been the introduction of the Aadhaar biometric digital identity scheme.
In 2017, the government introduced the Goods and Services Tax (GST), which has helped over 10 million businesses join a single digital platform. In addition, user adoption of data and Internet subscriptions has been accelerated by competitive offerings from telecommunications companies.
Despite this, only 40% of Indians have internet access, and this number is significantly lower among those in the middle and bottom of the pyramid, especially in rural areas. Agriculture is a business field that is still largely untouched by internet-based technologies and is mostly handled by manual processes.
The introduction of a digital revolution in the sector has the potential to significantly change current farming practices. Therefore, it is important to promote digital ecosystems across the country and across many industries.
5G will be essential if this goal is to become a reality. As we anticipate its imminent launch, one of the most talked about effects will be on the Indian economy. The India Mobile Broadband Index 2022 predicts that 5G revenues in India will reach USD 9 billion by 2026, setting high expectations.
After the digital revolution that followed the start of the pandemic, it is now clear that no industry can function and realize its full potential without an uninterrupted internet connection. The agricultural industry has everything to gain from 5G technology. The use of technology has the potential to increase this sector, which accounts for around 20% of India’s GDP, to 50% or more.
Since this industry depends on robust networks and connections with various parts of the country, all stakeholders must have a seamless connection to provide personalized service. Farmers with the right connections can access timely information on government services, appropriate crops for the season, market monitoring for optimal pricing, and the opportunity to participate in trade-related activities.
Additionally, stakeholders can benefit from increased productivity and efficiency throughout the farm-to-market process using smart farming and precision farming. For the country to experience increased prosperity and commercial expansion, 5G will be crucial, as will citizen participation.
5G will provide an automation channel to help billions of people and industries with their wireless connectivity to develop creative solutions at scale. Due to India’s current lack of established connectivity and speedy infrastructure, it is crucial to embrace wireless connectivity as the majority of the population will be left out of the next phase of digital progress.
Moreover, India will become a more inclusive economy as more and more people use 5G to communicate with each other and optimize their processes, goods and services, thereby boosting India’s economy and GDP. It will develop into an ecosystem of a prosperous and productive economy where costs keep falling and output keeps rising.
The future of 5G in India
Bridging the current digital divide is an achievable goal with the imminent launch of 5G services. If we seize the right opportunities at the right time, we could reap the benefits of a rewarding future and a digital economy that embraces all aspects of society sooner than expected.
“New applications are expected to leverage the benefits of 5G, including those in the manufacturing sector (20% of total benefits), retail, ICT and agricultural sectors. The agency said in a report that applications for smart cities and smart government are expected to grow the service sector, especially in the health and education sectors.
According to additional GSMA research, 5G will be a key enabler of digital transformation activities for businesses in various industries, including manufacturing, banking, energy and utilities, transportation, healthcare, sports and technology. retail. “mmWave 5G services have the potential to contribute $565 billion to global GDP over 15 years, from 2020 to 2034,” it said.
Given the importance of 5G to India’s digital future, it is now essential that the government and the mobile industry work together to advance and ensure the sustainable growth of the industry.”
India’s economy will be heavily impacted by investments made by telecom service providers, which will launch 5G services in major cities this year and expand them nationwide in the coming years.
Reliance Jio said last month it would invest 2 trillion rupees ($25.1 billion) in building a nationwide standalone 5G network by December 2023, while Bharti Airtel has set a March 2024 deadline to achieve nationwide 5G coverage.
According to the GSMA, Indian carriers would invest more than $1.6 trillion ($19.5 billion) in their networks between 2022 and 2025, laying the groundwork for potential in the consumer and business categories.
The agency cited trends of increasing demand for 5G smartphones despite the significantly higher average selling price, which it said was $400 or 32,000 yen in June 2022, up from 8,000 yen ($100 ) for all smartphones. China is the world’s largest single market for communications services, and a high level of 4G adoption (79%) indicates a subscriber base ready to upgrade to 5G, the agency said.
edited and proofread by nikita sharma