India's telecom and network equipment sector could double its contribution to the country's GDP and support $1 trillion in exports by 2030 under the National Telecom Policy 2025 (NTP-25), according to a Niti Aayog report. The report said the sector continues to face major hurdles, including heavy import dependence, low domestic value addition and higher costs for local manufacturers.
Trade imbalance persists
Telecom and network equipment exports accounted for just 0.2–0.3% of India's total exports between 2020 and 2024, at $0.6–1 billion annually, the Niti Aayog report said. Imports, meanwhile, stood at $4–5 billion a year, accounting for 0.7–1.1% of total imports.
| Metric | Annual value (2020–2024) | Share of India's trade |
|---|---|---|
| Telecom equipment exports | $0.6–1 billion | 0.2–0.3% |
| Telecom equipment imports | $4–5 billion | 0.7–1.1% |
The report highlighted that more than 80% of critical components, including 4G/5G antennas and signal processors, are sourced from China.
Key findings from the report
- Exports: $0.6–1 billion annually, just 0.2–0.3% of total exports (2020–2024).
- Imports: $4–5 billion annually, accounting for 0.7–1.1% of total imports.
- China supplies over 80% of critical components such as 4G/5G antennas and signal processors.
- Indian makers of generic TANE equipment face up to 26% higher fiscal disability, rising to 29% where extended buyer's credit applies.
- Domestic value addition is often below 20%, with manufacturing concentrated in low-value assembly.
- Supportive policies could lift GDP contribution to 1–1.5%, create 500,000 skilled jobs and yield $50 billion in exports by 2035.
Multi-country supply chain risks
The sector's supply chain is spread across several countries, with different regions specialising in key components, according to the report. An Indian 5G base station, for instance, may combine Taiwanese chipsets, Japanese optical transceivers and US-designed IP cores. This makes the industry vulnerable to disruptions in any one market.
The report also pointed to structural cost disadvantages at home. Indian companies producing generic TANE equipment face up to 26% higher fiscal disability than global peers in high-value-added telecom manufacturing.
The disability rises to 29% in product categories where buyer's credit is available against imports for an extended period, the Niti Aayog report said.
That disadvantage, the report said, is compounded by the nature of domestic manufacturing, which remains concentrated in low-value assembly with domestic value addition often below 20%.
Job and GDP targets
Niti Aayog said continued supportive measures could raise telecom and network equipment's contribution to GDP to 1–1.5%, create 500,000 skilled jobs and help India emerge as a $50 billion export hub by 2035. The report described the sector's existing vulnerabilities as a potential platform for global leadership if addressed through policy.
Government measures
The government has introduced the Production Linked Incentive scheme to support the sector, the report noted. It cited the need for robust intervention to align with NTP-25's targets.
Robust government intervention will go a long way in catalysing domestic manufacturing, aligning with NTP25's 150% output surge and 50% import substitution goals.
For importers, exporters and customs brokers, the report's figures underscore that telecom equipment remains a structurally import-heavy category in India's trade basket, with China dominant in critical components even as policy efforts aim to expand domestic output and substitution.
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