India Telecom Equipment Market Projected to Reach $50 Billion
KPMG in India projects the domestic telecom equipment market will double to $50 billion by FY32, driven by AI and digital infrastructure convergence.
India's telecom equipment market is projected to double from $25 billion in FY25 to $50 billion by FY32, according to a report by KPMG in India. This growth rate is nearly twice the global average, supported by a projected 17% annual increase in mobile network traffic between 2025 and 2030.
Domestic manufacturing capabilities have expanded significantly, with handset production reaching Rs 6,270 billion in FY26 and telecom equipment import substitution hitting 60%. However, the report notes a disparity in financial growth, as operator revenues are expected to grow at a slower annual rate of 2.7%.
Akhilesh Tuteja of KPMG in India attributes this shift to the convergence of AI, semiconductors, cloud, and digital infrastructure. He suggests this evolution allows India to move beyond basic connectivity toward the creation of high-value technology platforms and globally relevant intellectual property.
