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Can India become the 5G manufacturing powerhouse?



India is at the cusp of a digital revolution powered by increasing broadband and internet penetration, exponential data uptake, the Government’s focus on digitalisation and increasing trend of technology adoption across industries. 5G networks offer the potential to transform industrial sectors and deliver significant social and economic benefits in India. mmWave spectrum in particular will play a crucial role in enabling the high-speed and ultra-low-latency features required by many 5G applications. India will benefit significantly from mmWave-enabled 5G. Over the period 2025–2040, we estimate that mmWave-enabled 5G will deliver $150 billion in additional GDP for India. The manufacturing sector will see the greatest impact, accounting for about a fifth. The healthcare sector will also benefit greatly from mmWave-enabled 5G, with an impact of approximately $4 billion.



The Indian market faces key challenges that are hindering operators’ capacity to invest in new technologies. While smartphone adoption has soared in the past three years and India is forecast to become the second largest smartphone market in the world by 2025, the market has some of the lowest ARPU levels globally and operators some of the highest levels of debt. 5G will enable new use cases not possible with previous technological standards. One of the factors that will favour us in becoming a 5G manufacturing powerhouse is the backlash towards Chinese telecom gear makers. Nearly all the developed and underdeveloped nations are running away and barring Chinese gear makers in their 5G development. The benefit of backlash is being enjoyed by competitors like Ericsson and Nokia. It would be too early to assume that India is set to become a 5G manufacturing powerhouse. 5G could be the answer to the digital aspirations harboured by the industry and our society.

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