5G may Contribute up to 2% to India's GDP by 2030

5G may Contribute up to 2% to India’s GDP by 2030

The launch of 5G services will strengthen India's position as an economic and technology powerhouse globally and is expected to boost 2% of the country’s gross domestic product (GDP).

The launch of 5G services will strengthen India’s position as an economic and technology powerhouse globally and is expected to boost 2% of the country’s gross domestic product (GDP), amounting to approximately $180 billion by 2030, according to a new report by industry body Nasscom.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

What The Report Pointed:

The report titled, “5G — Unfolding India’s era of digital convergence” was released on the side lines of Nasscom Tech Innovation Conclave (NTIC) 2022, added that “5G is expected to create new value through hyper-connectivity and become a catalyst for digital transformation across industries”.

What Has Been Said:

“For India, 5G provides an opportunity for industries to augment the pace of digitisation at the grassroots level and for consumers to gain with economies of scale,” said Debjani Ghosh, president, Nasscom. However, she said that “achieving this will require effective ecosystem collaboration between telcos, OEMs, infrastructure companies, and the government to increase consumer adoption and market readiness to unlock large-scale benefits of 5G”.

Most Beneficiary Sector:

Sectors such as healthcare, energy and utilities, manufacturing, and retail are expected to benefit the most from large-scale 5G adoption. For example, certain aspects such as adequate infrastructure upgradation and fiberisation for 5G deployment, along with network densification need to be addressed to realise the utmost benefit of the technology across industries, the report noted.

Need of The Hour:

The government needs to equip the ecosystem by catalysing a skilled workforce through effective academic and industry collaboration, implementing robust policies that involve vocational training in rural areas, providing financial incentives and minimising regulatory overlaps with other ministries for seamless 5G deployment. Cybersecurity infrastructure and privacy protection mechanisms too need to be enhanced to minimise cyber threats and attack vectors.

India’s Telecom base:

India currently has the second-highest number of telecom users in the world, with 1.1 billion users, of which 740 million are 4G customers. However, with the launch of 5G in the country, the shift is expected to offer rapid up-gradation of customer experience.