Indian economy: mobile phones to
contribute $400 bn to GDP by 2020
Indian
economy is set for windfall gains as mobile phone users increasingly drive
business forward. Mobile economy in India, world's second largest market by
subscribers, will contribute around USD 400 billion to the country's GDP and
create 4.1 million jobs by 2020, a report by the global mobile operators
industry body GSMA said today.
Mobile economy will also lead to investments of USD 9 billion in
telecom infrastructure, said the 'Mobile Economy India 2013' report prepared in
collaboration with consulting firm Boston Consulting Group.
"The Indian mobile industry is
fast-paced and innovative, but it currently lacks the regulatory environment to
support its ambitions," GSMA Director General Anne Bouverot said.
The mobile ecosystem generated about 5.3 per cent of GDP for India
in 2012, directly supported 730,000 jobs and an additional two million jobs
when points of sale and distributors are included, she added.
According to Bouverot, the report predicts that by 2020, mobiles
will contribute almost USD 400 billion to India's GDP, create 4.1 million
additional jobs and invest USD 9 billion in infrastructure, with USD 34 billion
contributed to public funding.
She said, however, that an absence of predictable, long- term
policies in areas like allocation of radio frequencies is acting as a brake on
investment, and the government's target of increased rural coverage would be
supported by a more flexible spectrum policy.
This would be feasible particularly with the release of more
frequencies in the bands below 1 GHz and the development of allocation
processes that do not focus solely on maximising short-term spectrum fees,
Bouverot added.
"India is on the cusp of dramatic transformation, both
economically and socially, through mobiles," GSMA India Director Sandeep
Karanwal said.
The mobile industry is ready to work closely with the government,
as well as other adjacent industry sectors, to accelerate growth through
mobile, increasing technological innovation in India and enhancing the lives of
the citizens, he added.
Courtesy:- The Financial Express
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