Telecom sector contributes 1.5 p.c to Indias GDP

MUMBAI, INDIA: The contribution of Indian telecom sector to the growth of India’s economy is immense. It is directly contributing more than 1.5 per cent GDP of the country, and has a multiplier effect on growth because of connecting the people and business around it, said the Minister of State for Communication and Information Technology, Gurudas Kamat.

While launching Tata DOCOMO service in Mumbai today the minister also observed that the Indian telecom Industry is the second largest wireless market in the world with a total wireless subscriber base of 435 million.

He said India is targeting to reach a subscriber base of 771 million by 2013.

“In addition to this, we have nearly 37.66 million landline subscribers. India has one of the cheapest cell phone rates in the world,” he said.

The minister observed that “connecting rural India” for both voice and data connectivity is the main target of India’s telecom industry.

Expressing satisfaction over the fact that the 74 per cent of new wireless subscribers are now coming from our rural areas as compared to 42 per cent from urban, Kamat said that we also mandated the Government-owned telecom providers to accelerate rural broadband wireless deployment this year.

Talking about the India’s telecom equipment manufacturing sector, the Minister said this sector is also set to become one of the largest in the world, by 2010. These manufacturing facilities, apart from making India self reliant, generate a lot of secondary employment.

Sustained government efforts in this area have yielded results and have enabled to achieve the objective of making India as a leading manufacturing hub for electronics, IT and telecom, he said.

Kamat said that the government is working on many more initiatives to further improve the telecom sector.

These new initiatives include to bring inclusive connectivity to both rural and urban India; mobile number portability which will not only give more choices to customers but also lead operators to further improve their services to retain their customers and auctioning spectrum for 3G and WiMAX within this financial year.

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