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Digital economy to hit 20% of India’s GDP by 2035; Telecom Policy'25 still in draft stage: Govt tells Lok Sabha
Draft National Telecom Policy to drive universal connectivity, domestic manufacturing and next-gen tech push.
The draft National Telecom Policy '25 aims to take India among the top 10 innovation hubs for telecom technologies like 6G, AI, IoT, and quantum communications.
The Government informed the Lok Sabha that the National Telecom Policy 2025 (NTP-25), which aims to steer India’s next phase of digital expansion, is currently under drafting and has not yet been finalized.
Responding to an unstarred question on December 3, Minister of State for Communications and Rural Development Dr. Pemmasani Chandra Sekhar said the policy will define the strategic direction for the sector around universal connectivity, next-generation telecom technologies such as 5G, 6G, satellite and IoT, and boosting domestic manufacturing.
The Minister clarified that while the draft policy is in progress, the government continues to improve rural and remote-area connectivity through multiple schemes supported under Digital Bharat Nidhi (DBN), including BharatNet, 4G saturation of uncovered villages, and digital infrastructure rollout in Left-Wing Extremism-affected regions.
Focus on Rural & Tribal Regions
As part of the ongoing DBN-funded projects, 2,644 telecom towers have been planned in rural Maharashtra, expected to cover 3,156 villages and deliver fiber connection to all gram panchayats.
The government is also prioritizing connectivity for remote and tribal belts, which has been projected as a critical component of digital inclusion and economic growth.
Boost for Domestic Manufacturing
Dr. Sekhar highlighted that the government is pushing for indigenous manufacturing of telecom and satellite equipment, supported by initiatives such as the Production Linked Incentive (PLI) scheme. The objective is to increase local value addition and generate employment particularly in backward and under-served districts.
Digital GDP To Nearly Double
The Minister noted that India’s digital economy currently accounts for 12–14% of national GDP, and is expected to rise to nearly 20% within the next decade, as projected during the India Mobile Congress 2025. The projections depend on factors such as technology adoption, infrastructure rollout, global economic conditions, and private-sector investment.
Monitoring Mechanism & Rollout Plans
Once finalized, NTP-25 is expected to set clear frameworks for:
- State and district-level authorisations
- Spectrum allocation and project sanctions
- Monitoring of quality of service (QoS)
- Tracking rollout across underserved areas
- Oversight of fund utilisation
The policy will emphasize Ease of Doing Business, regulatory simplification, and participation of technology innovators and manufacturers.
The telecom sector—central to India's ambition of becoming a global digital hub, is expected to be a major driver of economic competitiveness, including enabling industries such as fintech, e-commerce, digital media, advertising, gaming and AI-based services. The policy is also expected to catalyse demand from digital-first sectors such as advertising and streaming, which rely heavily on high-speed networks and data-centric advancements.
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