NEW DELHI: India's telecoms industry, one of the fastest growing markets in the world, added 22.2 million users in the past year thanks to cut-throat competition and falling rates, the communications ministry said.

The flourishing sector grew to 79.4 million customers at the end of May -- a 39 percent annual growth that came mainly on the back of a nearly doubling of the mobile base to 37 million users.

Intense competition in the fragmented sector has resulted in average mobile tariffs falling to as low as one U.S. cent a minute -- some of the lowest in the world. These rates are attracting about 1.5 million customers each month.

As a consequence, the number of telephones per 100 people in the country rose to 7.3 in May from 5.35 in the same month a year earlier, the data showed.

Galloping demand for telecom services in India has attracted many carriers, global handset makers and telecoms gear manufacturers because they are facing tepid demand from many saturated western countries.

Major telecoms services providers in India include Bharti Tele-Ventures Ltd, 28 percent owned by Singapore Telecommunications Ltd, the Reliance and Tata groups and state-run Bharat Sanchar Nigam Ltd.