India’s telecom industry is poised to be a global leader driven by its huge size, quick technology evolution, and smart government initiatives. On March 3, 2025, India’s telecom sector has a subscriber base of more than 1.2 billion, a market cap of USD 53.18 billion, and an estimated growth to USD 83.34 billion by 2030 with a CAGR of 9.4%. With innovation, infrastructure expansion, and foreign collaborations, India is not only keeping up but setting the pace to take over the world’s telecom scene. Here’s an in-depth report on how this revolution is happening, including the top Indian shares to invest in this thriving industry.
A Massive Market with Unmatched Growth Potential
The Indian telecommunications industry is the second-largest in the world, with around 1.203 billion subscribers as of May 2024, of which 1.148 billion are wireless subscribers.
The industry saw a gross revenue of INR 3.36 trillion (USD 40 billion) in financial year 2023-24, an increase of 0.71% from INR 3.33 trillion in 2022-23, while Applicable Gross Revenue (ApGR) increased by 6.38% to INR 3.23 trillion (USD 38.4 billion).
Internet penetration is gaining pace, with 954.4 million users as of March 2024, including 928 million broadband subscribers (95.58% wireless), expected to cross 900 million in 2025 and reach 1 billion by the end of the decade.
Private behemoths Reliance Jio (47.7 crore subscribers as of September 2024) and Bharti Airtel (28.5 crore) have a stranglehold of over 92% wireless market share, while Vodafone Idea (12.6 crore) and BSNL (3.7 crore) have smaller pieces.
The USD 48.61 billion market in 2024 is forecast to reach USD 53.18 billion in 2025 and USD 83.34 billion by 2030, with some estimates predicting a high of USD 103.9 billion in the late 2020s, fueled by data usage (49,543 petabytes in Q4 2023) and 5G penetration.
5G India: Pioneering the Next Generation of Connectivity
Since its launch in October 2022, 5G has revolutionized India’s telecommunication sector. By mid-2023, there were more than 315,000 5G base stations covering 700+ districts, increasing to 442,000 by mid-2024.
With 100 million 5G subscribers by December 2023 and speeds of more than 1 Gbps, India’s ranking for mobile broadband speed improved from 118 to 15 internationally (Economic Survey 2024).
5G will contribute USD 450 billion to the economy by 2040, driven by IoT (5 billion devices addressed) and smart city and healthcare applications.
India’s 6G aspirations are also ambitious, with more than 200 patents awarded and Bharat 6G Alliance targeting a USD 240 billion economic impact by FY 2028. Domestic 4G and 5G stacks, with BSNL having installed 50,000+ 4G sites by early 2025, are now being exported to 18 nations, reflecting the tech capabilities of India.
Infrastructure: The Foundation of Telecom Growth
India’s telecommunication infrastructure is the backbone of its development. Telecom towers have grown from 310,000 in 2010 (483,333 BTS) to more than 450,000 by 2017, while BTS numbers reached 2.55 million by 2023.
Optical fiber cable (OFC) roll-out increased from 900,000 km in 2014 to 3.9 million km by 2023, where BharatNet deployed 690,000 km to cover 214,000+ Gram Panchayats. Fiberization, at 36% of towers now, aims for 70% by 2025, serving 941.47 million broadband subscribers (903.79 million wireless) as of November 2024.
The tower-sharing approach, world-envied, reduces costs and emissions, while BharatNet’s 1.2 million Fiber-to-the-Home (FTTH) subscriptions and 100,000+ rural Wi-Fi hotspots increase connectivity. This infrastructure backbone powers India’s global telecom ambitions.
Government Initiatives: Catalyzing a Telecom Revolution
The government of India has been the central driving force for converting the telecom industry into an international player by using a combination of high-stakes policies, fiscal measures, and reforms. Up to March 3, 2025, the government initiatives have facilitated infrastructure expansion, investment inflow, and put India at the center for telecommunication innovation. The following is an elaborate description of the central government programs and their contributions:
Digital India Program
- Launch and Scope: Rolled out in July 2015, this prime mover is targeted at establishing a digitally empowered nation by accelerating connectivity, digital literacy, and e-governance.
- Impact: Internet subscriptions increased from 88.1 crore in March 2023 to 95.4 crore in March 2024, up by an 8.2%, while broadband subscriptions went up to 928 million. This has surged data consumption to 49,543 petabytes during Q4 2023, paving the way for India’s USD 1 trillion digital economy target in 2025.
- Details: INR 14,000 crore investments have linked 1.5 lakh+ post offices and widened e-services, propelling telecom’s 6.5% GDP contribution.
BharatNet Project
- Objective: Initiated in 2011 as the National Optical Fibre Network, BharatNet focuses on offering broadband to all 250,000+ Gram Panchayats, narrowing the rural-urban digital divide.
- Progress: As of early 2025, 214,000+ Gram Panchayats are linked with 690,000 km of OFC, 1.2 million FTTH connections, and 100,000+ Wi-Fi hotspots. The initial 2022 deadline was pushed to 2024, with INR 50,000 crore spent.
- Impact: Rural teledensity reached 85.69% in 2024, empowering 500 million potential new users by 2030, although 36,000+ villages are still not connected.
National Digital Communications Policy (NDCP) 2018
- Goals: NDCP, launched in September 2018, aims to achieve USD 100 billion in investments and 4 million jobs by 2022, covering universal broadband, 5G, and IoT.
- Achievements: FDI inflows were recorded as USD 39.32 billion between April 2000 and March 2024, with 5G deployment reaching 738 districts by 2024. Job creation targets reached 2.2 million direct employment by 2025.
- Details: The policy triggered INR 1.5 lakh crore of spectrum auctions (2022), although investment targets were partially achieved because of regulatory delays.
Production-Linked Incentive (PLI) Scheme for Telecom
- Launch: Launched in 2021 with INR 12,195 crore allocation to enhance domestic production under “Make in India.”
- Results: By Jan 2025, commitments worth INR 41.15 billion (USD 492 million) resulted in sales of INR 75,000 crore, exports worth INR 14,963 crore, and creation of 25,000+ jobs. Export increased by 15% YoY during FY24.
- Impact: The likes of Nokia and Foxconn increased production, minimizing import dependency by 20% and assisting domestic 5G equipment.
5G Rollout and Spectrum Auctions
- Implementation: Spectrum auctions in 2022 (INR 1.5 lakh crore) facilitated 5G deployment from October 2022, 442,000 BTS by mid-2024, and 100 million subscribers by December 2023.
- Plans: DoT aims to cover 5G in one Gram Panchayat in each of the 4,000 blocks by 2025, with an estimated INR 2 lakh crore for all-India coverage.
- Impact: India’s international broadband speed ranking improved to 15th (Economic Survey 2024), with 5G set to contribute USD 450 billion by 2040.
Telecommunications Act 2023
- Enactment: Applicable from June 2024, the act supersedes colonial legislation (e.g., Indian Telegraph Act 1885), updating laws for privacy, networks, and self-reliance.
- Features: The “Digital Bharat Nidhi” fund (August 2024) sets aside INR 5,000 crore each year for telecom initiatives, simplifying Right of Way (RoW) regulations.
- Impact: Cut regulatory bottlenecks by 30%, increasing fiberization to 50% of towers from 36% by 2025.
Revival of BSNL
- Investment: INR 70,000 crore capital injections (2019) and INR 1.64 lakh crore (2022) to revive the state-owned telecom operator.
- Progress: BSNL installed 50,000+ local 4G sites by early 2025 with 5G trials in prospect. Subscriber base stabilized at 3.7 crore.
- Impact: 18 countries of indigenous tech exports and a 10% market share revival indicate the comeback, resonating with Aatmanirbhar Bharat.
National Broadband Mission
- Objective: Initiated in 2019 to cover all villages by 2022 (extended to 2024), aiming for 50 Mbps average speeds.
Accomplishments: Broadband subscribers reached 928 million by March 2024, and 3.9 million km OFC were laid. Rural connectivity increased by 15% since 2020.
- Details: INR 70,000 crore funded, with a goal of 70% tower fiberization by 2025 (present 36%).
Foreign Direct Investment (FDI) Liberalization
- Policy: Since October 2021, 100% FDI permissible (49% automatic, 51% through approval), versus 74%.
- Results: FDI inflows grew 150% from USD 8.32 billion (2014-2021) to USD 20.72 billion (2021-2024), an aggregate of USD 39.32 billion since 2000.
- Impact: International companies like Qualcomm invested INR 10,000 crore in 5G, building infrastructure.
Atmanirbhar Bharat in Telecom
- Emphasis: Encourages indigenous technology, with DoT’s 6G research group and INR 5,000 crore R&D provision.
- Results: More than 200 6G patents and BSNL’s 4G/5G stacks operational, saving on imports by INR 15,000 crore every year.
- Vision: Has 10% of world telecom patents by 2030 with the addition of USD 240 billion through 6G.
These efforts all together improve connectivity, bring USD 100 billion of expected investment by the mid-2020s, and make India a telecom leader.
International Collaborations: Amplifying Global Influence
India’s international telecom strength is further added to with collaborations with the International Telecommunication Union (ITU) and being a venue for the World Telecommunication Standardization Assembly (WTSA) in October 2024, welcoming 2,000+ participants from 180 countries.
Co-collaborations with the University of Chicago on quantum communications and 6G research partnerships add a layer of innovation. Telecom exports reached INR 252 billion (USD 3.01 billion) in 2023, reaching 18 nations, including the US, further elevating India’s global influence.
Best Indian Shares to Buy in the Indian Telecom Sector
Investing in Indian telecom shares provides exposure to a sector that is ready for exponential growth. The following are the top choices based on market capitalization, subscriber base, financials, and 5G leadership as of March 3, 2025, confirmed with key facts:
Bharti Airtel Ltd.
- Market Cap: INR 935,644 crore (approximately USD 111 billion, based on recent trends).
- Subscribers: 28.5 crore (285 million) in September 2024, growing at a year-on-year basis by 6% in net additions (TRAI, June 2024).
- Stats: INR 1.5 lakh crore (USD 18 billion) of gross revenue in FY24 with ARPU being INR 208 (USD 2.5), increased on account of premium 4G/5G migrations. 5G has 738 districts covered and 100 million users as of December 2023.
Why Buy: Strong 5G ramp-up by Airtel, stable cash flows, and 33% market share (AGR basis) make it a standout pick. High investor appetite following Singapore Roadshow (CLSA, March 2025), even post-promoter selling of stakes, with corrections being seen as buying opportunities.
Reliance Jio (through Reliance Industries Ltd.)
- Market Cap (Reliance Industries): INR 19.5 lakh crore (USD 232 billion), with Jio being a significant contributor.
- Subscribers: 47.7 crore (477 million) as of Sept 2024, with a 39.7% market share (TRAI, Dec 2023).
- Numbers: Jio’s 5G network covers all the top cities with 20 million connections within six months of launch.
- Contribution to Reliance’s revenue was INR 1.2 lakh crore (USD 14.4 billion) in FY24, with ARPU of INR 181 (USD 2.2).
Why Buy: Jio’s leadership in the market, impactive 5G growth, and IPO potential (CLSA highlights as a catalyst) make it an essential stock. Its 3% year-over-year subscriber expansion (TRAI, June 2024) indicates continued dominance.
Indus Towers Ltd.
- Market Cap: INR 66,947 crore (USD 8 billion).
- Stats: Has 184,748 towers in 335,106 sites with 99.96% uptime. INR 25,672 crore (USD 3 billion) revenue and INR 6,000 crore (USD 715 million) net profit in FY24.
Why Buy: Being India’s largest tower firm, Indus enjoys 5G-led demand (added 10,000 towers in FY 2020-21). Its involvement in BharatNet and consistent returns make it a solid infrastructure play.
Tata Communications Ltd.
- Market Cap: INR 45,379 crore (USD 5.4 billion).
- Stats: Carries 30% of world internet routes, with yearly revenue of INR 20,000 crore (USD 2.4 billion). Net profit increased 15% year-on-year in FY24.
Why Buy: Its B2B concentration, international coverage (80% of clouds covered), and 5G-prepared infrastructure position it as a diversified telecom stock with consistent growth prospects.
Vodafone Idea Ltd.
- Market Cap: INR 93,049 crore (USD 11 billion).
- Subscribers: 12.6 crore (126 million) as on September 2024, which is down by 11% year-on-year (TRAI, June 2024).
- Stats: In FY24 had revenue of INR 42,000 crore (USD 5 billion) but was weighed down by INR 2.1 lakh crore (USD 25 billion) debt. Stock has gained 25.35% in the last 12 months but is 43.67% lower than its 52-week high.
Why Buy: High risk-reward potential if it raises capital (discussions with Apollo and Carlyle for INR 7,540 crore). A turnaround can ride its 16.1% AGR market share.
These stocks capture varied strengths—market leaders (Jio, Airtel), infrastructure (Indus), global players (Tata), and high-risk turnarounds (Vodafone Idea)—providing a balanced telecom portfolio.
Opportunities and Challenges: Balancing Growth with Resilience
Opportunities
Growth of Digital Economy
- Scale: India’s digital economy is expected to become USD 1 trillion by 2025 (National Digital Communications Policy 2018), and telecom will be its backbone. Internet subscribers increased from 88.1 crore in March 2023 to 95.4 crore as of March 2024, an increase of 8.2%, with broadband at 928 million.
- Influence: This increase energizes the consumption of data services, where the consumption of mobile data touches 49,543 petabytes during Q4 2023 (12.59% attributed to 5G). Telephony’s GDP share, currently standing at 6.5% (INR 9 lakh crore for the year 2015), will increase up to 8% by the year 2030, growing at INR 2-3 lakh crores per year.
- Adoption: 5G, with 442,000 BTS by mid-2024 and 100 million users by December 2023, will add USD 450 billion to the economy by 2040. IoT applications aim at 5 billion connected devices, transforming industries such as healthcare (telemedicine) and manufacturing (Industry 4.0).
- 6G Potential: More than 200 6G patents and the Bharat 6G Alliance will contribute USD 240 billion by FY 2028, making India a leader in up to 100 Gbps speeds by 2030.
Untapped Rural Market
- Potential: With 65% of India’s 1.4 billion people (more than 910 million) residing in rural areas, just 20.26% were online in 2017, rising to 85.69% teledensity by 2024. BharatNet has linked 214,000+ Gram Panchayats, with 1.2 million FTTH connections and 100,000 Wi-Fi hotspots.
- Growth: Low prices may bring 500 million new internet subscribers by 2030, increasing ARPU and revenue as rural data consumption increases (e.g., 49,543 petabytes total, rural share increasing).
OTT and Content Services
- Demand Surge: OTT services such as Netflix and Disney+ Hotstar, and gaming, propelled data consumption to 49,543 petabytes in Q4 2023. Jio’s bundled content products experienced a 3% subscriber growth (TRAI, June 2024).
- Revenue: Partnerships or premium plans can be monetized by operators, which can grow ARPU from INR 200-250 (USD 2.5-3) to INR 300+ in 2027, contributing an additional INR 50,000 crore every year.
Private 5G Networks and Enterprise Solutions
- B2B Growth: Manufacturing and logistics sectors are embracing private 5G networks, and Jio and Airtel are gunning for this sector. The global private 5G opportunity might impact India’s USD 10 billion potential in 2030.
- Diversification: This moves revenue from the saturated B2C market (1.148 billion wireless subscribers) to high-value enterprise deals, enhancing margins.
Sustainability and Green Telecom
- Trend: As energy prices increase (telecom uses 2% of India’s power), solar-powered towers (e.g., Indus Towers’ plans) are in line with net-zero ambitions by 2070.
- Savings: Green technology may reduce operational expenses by 20% (INR 10,000 crore a year), increasing profitability and appealing to ESG-oriented investors.
Challenges
Intense Price Competition and Low ARPU
- Problem: Tariff wars since Jio’s 2016 entry cut data prices to some of the lowest in the world (INR 10-15/GB). ARPU still stands at INR 200-250 (USD 2.5-3), much lower than global averages (e.g., USD 20 in the US).
- Effect: Operators are struggling to cover INR 2 lakh crore+ spectrum outgo and INR 1 lakh crore capex, with net profits pinched (e.g., Airtel’s INR 6,000 crore vs. Jio’s INR 20,000 crore in FY24).
High Debt Levels
- Burden: Vodafone Idea’s INR 2.1 lakh crore debt (USD 25 billion) and Airtel’s INR 1.2 lakh crore (after AGR dues) capex limit. Total industry debt is over INR 4 lakh crore.
- Risk: This restricts 5G growth (e.g., Vodafone Idea falls behind with 16.1% AGR share compared to Jio’s 39.7%), putting market share and stock stability at risk.
Regulatory and Policy Uncertainty
- Challenges: High spectrum prices (INR 1.5 lakh crore in 2022 auctions) and levies such as the Universal Service Obligation Fund (USOF, 5% of AGR) weigh on operators. The 2019 AGR judgment introduced INR 1.47 lakh crore of dues.
- Impact: Uncertainty postpones investment, with merely 36% of 12 lakh towers fiberized against a 70% goal, hampering 5G deployment.
Digital Divide and Rural Penetration
- Gap: Rural teledensity is behind urban regions (85.69% aggregate vs. 130% urban in 2024). Expense of infrastructure in low-revenue rural areas (e.g., INR 50,000 crore for BharatNet) discourages expansion.
Challenge: Just 214,000 of 250,000+ Gram Panchayats are connected, jeopardizing 500 million potential users staying offline.
5G Rollout Costs and Delays
- Cost: 5G needs fiber backhaul and dense small cells (3.9 million km OFC compared to 5 million km required). Overall cost estimates are more than INR 2 lakh crore, with spectrum auctions costing INR 4.3 lakh crore since 2010.
- Delay: Complete coverage is behind China (2 million+ 5G BTS), with rural 5G deployment awaited beyond 4,000 blocks planned by 2025.
Cybersecurity and Data Privacy
- Threat: Increasing digitalization (954.4 million internet users) poses cyberattack threats, and 5G enhances weaknesses (e.g., IoT security breaches). The Digital Personal Data Protection Act (DPDPA) 2023 requires compliance expenses of INR 5,000 crore every year.
- Impact: Data breaches may degenerate trust, which could cost operators INR 10,000 crore in revenue loss and penalties by 2030 if left unchecked.
Why Indian Telecom Is a Global Leader in the Making
India’s telecom industry has scale (1.2 billion subscribers), innovation (442,000 5G BTS), and ambition (6G patents). Growth is fueled by infrastructure (3.9 million km OFC, 2.55 million BTS) and policies (USD 100 billion investment target), and its voice is amplified by international relationships (WTSA 2024).
Directly employing 2.2 million and generating INR 84,500 crore in Q3 FY24 revenue, it’s a socioeconomic giant. With a market that is looking to reach USD 103.9 billion by the late 2020s, India’s telecom tale is the world benchmark.