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$100 bn investment in telecom to add $1.2 tn to India's GDP: Report

IANS  |  New Delhi 

The investment of $100 billion in the Indian telecom industry as envisioned in the National Digital Communications Policy 2018 (NDCP) would result in an increase of $1.21 trillion in India's (GDP) on a cumulative basis, a report said here on Thursday.

Currently, is a $2.5 trillion economy. The joint report by on International Economic Relations and Forum also said that a 10 per cent hike in investment in the country's telecom sector may lead to an increase of 3.3 per cent in the country's GDP on an average.

"The multiplier effect of investment in communications implies that the $100 billion investment envisioned in the new policy could cumulatively add $1.21 trillion (Rs 78,90,711 crore) to the GDP over the duration of the proposed investment," the report said.

"These are significant impacts and yet could be underestimated given that penetration of internet is still below international levels," it added.

Speaking at the launch of the report, Aruna Sundararajan, Secretary, stated: "While the first wave of mobile revolution heralded a new age of growth and dynamism to the economy, the second wave is now being led by the growth of and investments in telecommunication infrastructure, leading to exponential benefits to the economic and GDP growth."

It is critical therefore for states across to leverage it to ensure greater direct and spill-over benefits, she added.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 06 2018. 18:32 IST
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