India's Strategy to Attract Foreign Investments through Low Data Tariffs

India is leveraging its low data tariffs to attract foreign investments, particularly from companies dependent on affordable and fast broadband connectivity for delivering essential services.

Key Objectives

• Highlighting India's low data rates compared to countries such as China, US, UK, and Australia.
• Emphasizing the rapid adoption of 5G services and affordable 5G phones in India's large mobile phone market.

Government Initiatives

• The Prime Minister’s Office (PMO) is collaborating with the Department of Telecommunications (DoT), Ministry of External Affairs, and the Department for Promotion of Industry and Internal Trade (DPIIT) to promote India's low data rates.
• The telecom department is actively promoting India as an attractive investment destination offering affordable internet access.

Data and Statistics

• India's average data pricing is $1.89/month, significantly lower than China ($8.84/month), the US ($49/month), and the UK ($12.5/month).
• The expected growth of the smartphone user base from 695 million in FY25 to 915 million by March 2027.
• India's 5G smartphones reached 250 million by September 2024, comprising over 83% of shipments.

Telecom Developments

• Reliance Jio and Bharti Airtel have completed the national rollout of 5G services, while Vodafone Idea plans a phased launch.
• The PMO is pursuing a comprehensive evaluation of the 100-plus 5G labs in the country to foster competition and productivity.

Security Concerns

The PMO has raised concerns about Indian mobile handsets in border areas automatically catching signals from neighboring countries' telecom operators, urging the DoT to investigate and address the issue.