5G in 99.9% districts, data cheaper than ever: How India’s telecom sector transformed in a decade

India’s telecom sector has witnessed a major transformation over the past decade, driven by the government’s vision of a digitally empowered nation, according to a report in the Economic Survey 2025–26. Policy efforts have focused on building a telecom ecosystem that is inclusive, developed, fast-moving, and secure, with an emphasis on universal connectivity and rapid technological adoption.

The sector’s growth is reflected in rising tele-density, which increased from 75.23 per cent to 86.76 per cent, helping narrow the digital divide between rural and urban areas. A sharp fall in wireless data tariffs has fuelled a surge in average monthly data consumption, underlining the importance of affordability in mass digital adoption. The survey also notes that 5G services are now available in 99.9 per cent of districts across the country, marking a significant milestone in India’s digital infrastructure expansion.

The telecom sector comes under the production-linked incentive (PLI)

The notable success of India’s telecom sector comes under the production-linked incentive (PLI) scheme, as exports rose by 1.5 per cent average annual growth rate (AAGR) between FY21 and FY25. By contrast, imports fell by 18.5 per cent during the same point of time.

To foster domestic manufacturing of telecom gear, the PLI scheme was launched in 2021 with an outlay of Rs 12,195 crore, which has attracted more than Rs 4,700 crore in investments. This enabled more than Rs 1,00,000 crore sales, including Rs 21,000 crore exports, and also generated nearly 30,000 jobs. The telecom equipment exports in the fiscal year 2025 (FY25) alone rose by 51.2 per cent year-on-year, as per the document.

“This trend indicates an early accomplishment in import substitution, aligning with the PLI framework's overarching objective of enhancing market penetration abroad,” the document, published ahead of Finance Minister Nirmala Sitharaman’s union budget announcement on February 1 (Sunday), said.