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5G/6G, SatCom And Semiconductor To Contribute $240 Bn To Indian Economy In 5 Years: KPMG Report

Updated: Oct 28, 2023 03:56:27pm
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5G/6G, SatCom And Semiconductor To Contribute $240 Bn To Indian Economy In 5 Years: KPMG Report

New Delhi, Oct 28 (KNN) Three technologies, 5G/6G, Satellite Communication (SatCom) and Semiconductors, collectively will add USD 240 billion to the Indian economy in the next five years and add 1.6% to India’s GDP by FY28, estimates KPMG in a report titled Expanding Tech Horizons: Unlocking India’s Digital Potential released at the India Mobile Congress (IMC) 2023 on Friday.

The report projects an ambitious and positive outlook for the Information and Communication Technologies (ICT) sector in India, saying the country was readying itself for an epochal shift to make it a global digital powerhouse and is focussing on developing and adopting cutting-edge technologies.

India followed the world in 4G, marched with the world in 5G and now aims to lead the world in 6G. Having demonstrated its prowess in mobile manufacturing, the country must move up the value chain to enhance domestic value addition ICT manufacturing, KPMG recommends.

The think-tank’s report also suggests that infrastructure providers must adapt to meet the evolving needs of 5G, encompassing elements like fiber capacity, optical transport, tower count, 5G repeaters, edge sites, small cells, and DAS (distributed antenna system) for indoor and outdoor solutions.

For India to achieve this “epochal” shift, “the country needs to transition from an assembly-only approach in electronics to a holistic, integrated, end-to-end manufacturing-led approach,” the report stated.

India must continue investing in research and development (R&D) to contribute to the advancement of 6G technology – to strengthen the global knowledge base and help shape the future of this technology, according to the survey.

“6G will require 100% fiberisation of towers, however, given that the current state of fiberisation of towers stands at 38%, the country will have to develop an expedited plan to meet the above targets,” the KPMG study suggested.

Yezdi Nagporewalla, India CEO, KPMG said, “the digital economy in India is on an exponential growth trajectory. The country’s forward-looking 6G vision document has positioned its digital prowess on the global technology forefront. It’s population dividend and technological progress give it a tremendous advantage and can help India achieve its goal of becoming a dependable global digital leader”.

For the SatCom sector to take-off, the government must allocate additional funding to the space sector, encourage academic R&D initiatives, make it easier for people to access financing through grants, sovereign funds, and other sources to increase private sector participation. Also Space Foreign Direct Investment (FDI) norms must be liberalised, the document further advocated.

The survey also highlighted investing in skill development for the workforce, with special focus on skill sets relating to all three areas: 5G/ 6G, semiconductors and satellite communication. 

(KNN Bureau)

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