Mobile to contribute $400 bn to India’s GDP by 2020

GSMA-india-gdpMobile will contribute almost $400 billion to India’s GDP by 2020 says “Mobile Economy India 2013” report developed by GSMA in collaboration with the Boston Consulting Group.

In 2012, Indian mobile operators made a significant economic contribution, accounting for 0.8 percent of GDP with the total mobile ecosystem representing 1.2 percent of GDP. In addition to the direct contribution from the mobile ecosystem, the improved productivity brought about by mobile technology contributed an additional 3.8 percent to India’s GDP and additional 0.3 percent to India’s GDP from general economy upliftment. So, in toto the overall economic impact from mobile technology in India amounts to nearly 5.3 lakh crore or $100 billion or 5.3 percent of India’s GDP in 2012.

The mobile ecosystem contributes directly 730,000 jobs in India and an additional 2 million jobs when points of sales and distributors are included in 2012. By 2020, it will create 4.1 million additional jobs and invest $9 billion in India’s infrastructure and $34 billion contributed to public funding.

In terms of mobile connections India has 900 mobile connections and 350 million unique subscribers. The 3G and 4G adoption is projected to increase by 31 percent from 107 million in 2013 to 409 million in 2017.

“The Indian mobile industry is fast paced and innovative, but it certainly lacks the regulatory environment to support its ambitions,” said Anne Bouverot, director general, GSMA.

In order to achieve $400 billion by 2020, India needs to have more spectrum and in the lower range say below 1 GHz thereby enabling coverage and speed and also focus on using existing spectrum more efficiently added Bouverot.

The report calls on the government to work with the mobile industry to design policies and regulations that maximizes long term private sector investment. In order to invest, the industry needs clarity on allocating and releasing more harmonized spectrum in larger blocks, government should focus on fostering public-private partnerships for the implementation of projects and seeking alternative funding resources and implements best practice for radio frequency limits based on International Commission of Non-Ionizing Radiation Protection (ICNIRP).

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