The report also projected a spike in adoption of 4G services in the country, saying the number of 4G connections would grow to 280 million by 2020 from just three million at the end of 2015.
"...At the end of June 2016, 616 million unique users had subscribed to mobile services in India, making it the second-largest mobile market globally, with almost 1 billion unique mobile subscribers expected by 2020," the report 'The Mobile Economy: India 2016' said.
The GSMA report forecasts improving affordability, falling device prices, operator investments in network coverage and quality will help deliver an additional 330 million unique subscribers in India by 2020.
This will lift the country's penetration rate to 68 per cent of the population by 2020, up from 47 per cent in 2015.
Notably, during the year, India overtook the United States to become the world's second-largest smartphone market with an installed base of 275 million devices, the report added.
"India is expected to see a significant uptake in mobile subscriptions, broadband and connectivity by 2020, marking a period of rapid development of the country's mobile economy," it said.
"In addition, the industry is set to invest heavily, with operator capex growing to USD 34 billion (Rs 2.3 lakh crore) for the period 2016 to 2020.
The Indian mobile industry's contribution to GDP is expected to grow to Rs 14 lakh crore (USD 210 billion) by 2020, from Rs 9 lakh crore (USD 140 billion) in 2015.
"To fully realise India's tremendous market potential, review and reform in key areas, including modernising regulation and long-term planning for spectrum allocation, would accelerate mobile broadband access and adoption across the country," Mats Granryd, Director General of GSMA said.
About 430 million people had access to mobile internet services as on mid-2016, and this is set to touch almost 670 million by 2020.
This still lags the regional average of 63 per cent penetration, and the survey found lack of awareness and locally relevant content to be the biggest barriers to internet usage.
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