In Short:
The Economic Survey of India for 2023-24 shows that India is one of the fastest-growing countries in terms of 5G networks. The country has moved up to the 15th rank in mobile broadband speeds, a significant improvement from its previous rank of 118. The survey emphasizes that the development of telecom technology requires substantial investment in research and development. To support this, the government plans to allocate 5% of the Universal Services Obligation Fund collections for R&D in the telecom sector. Additionally, India has seen a rise in electronic exports, with the production-linked incentive scheme driving growth. Domestic production and exports of electronic items have increased, with Apple assembling a significant portion of its iPhones in India.
India’s Telecom Sector on Fast Track
Exciting news alert! According to the latest Economic Survey of India 2023-24, **India** is racing ahead with its 5G network development, ranking among the fastest-growing countries in the world. In March 2024, its international rank for mobile broadband speed skyrocketed from 118 to an impressive 15, all thanks to the recent launch of 5G services.
Fueling Telecom Innovation
The survey highlighted the need for substantial investment in research and development (R&D) to propel **India** to the forefront of the global telecom sector. To meet this demand, the government has committed to allocating 5 per cent of the annual collections from the Universal Services Obligation Fund (USOF) towards telecom R&D. This strategic move aims to accelerate the development of cutting-edge technologies in the industry.
Boost in Electronic Exports
But wait, there’s more! While **India** might not immediately benefit from trade diversion from **China**, its electronic exports are making waves in the global market. Thanks to initiatives like the production-linked incentive (PLI) scheme, **India** has seen a significant surge in electronic production and exports.
Rise of Indian Electronics
The survey revealed impressive figures: domestic production of electronic goods soared to Rs 822 billion, with exports hitting Rs 190 billion in FY23. Notably, **Apple** ramped up its operations in **India**, assembling a whopping $14 billion worth of iPhones in FY24, representing 14 per cent of its global production. The share of electronics goods in **India’s** merchandise exports also jumped to 6.7 per cent in FY24, up from 2.7 per cent in FY19.
Moreover, **India**’s electronic exports to the US have undergone a remarkable transformation, shifting from a trade deficit of $0.6 billion in FY17 to a surplus of $8.7 billion in FY24.
