India’s telecom and network equipment (TANE) sector could raise its contribution to the economy to 1-1.5% and emerge as a $50 billion export hub by 2035.
Faster policy action is needed to reduce dependence on imports and strengthen domestic manufacturing, said NITI Aayog.
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India Remains Heavily Dependent on Telecom Equipment Imports
The sector’s export performance remains modest. Between 2020 and 2024, telecom and network equipment accounted for just 0.2-0.3% of India’s total exports, valued at about $600 million to $1 billion annually.
Imports, meanwhile, stood at $4-5 billion annually, or 0.7-1.1% of total imports. More than 80% of critical components, including 4G and 5G antennas and signal processors, are sourced from China, according to the NITI Aayog report.
The sector also relies on a global supply chain. An Indian 5G base station, for example, could combine Taiwanese chipsets, Japanese optical transceivers and US-designed intellectual property, leaving manufacturers exposed to disruptions in any one market.
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High Costs and Low Value Addition Hold Manufacturers Back
Indian companies producing generic telecom equipment face a fiscal disadvantage of up to 26% compared with global competitors in high-value manufacturing.
The gap can rise to 29% in categories where imported equipment benefits from extended buyer’s credit.
Domestic value addition is also often below 20%, with manufacturing concentrated largely on assembly rather than higher-value production.
The government has already introduced measures such as the Production Linked Incentive (PLI) scheme. NITI Aayog says sustained support could help lift the sector’s GDP contribution to 1-1.5%, create around 500,000 skilled jobs and build a $50 billion export industry by 2035.
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Policy Support Could Help India Build an Export Base
NITI Aayog said stronger government intervention would be important to meeting the goals of the National Telecom Policy 2025 (NTP-25), including a 150% increase in output and 50% import substitution.
For India’s telecom industry, the opportunity is therefore not limited to replacing imports. Building deeper domestic manufacturing could turn a supply-chain weakness into an export advantage.
The next test will be whether policy support can move India’s telecom equipment industry beyond assembly and towards globally competitive, high-value manufacturing.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
