Empowering India’s Future Communication Landscape

The telecom equipment and electronics market in India stands at a crucial juncture, requiring significant R&D investments to move forward

In the heart of India’s fast-growing electronics scene, there’s a big opportunity. As the country’s economy keeps getting stronger year after year, more and more people want electronics like smartphones and cool gadgets. This creates a great chance for companies to make and sell these products. We can see this happening with new businesses and brands popping up, showing off India’s spirit of creativity and innovation.

The launch of 5G services and the subsequent improvements will propel an expansion of USD 12.5 billion in the Indian telecom industry.

The introduction of 5G technology has accelerated the pace of innovation and consumers’ awareness of the latest technological advancements. To compete and stay relevant, brands must invest in research and development (R&D) to incorporate 5G capabilities and other cutting-edge features into their products. Indian consumers are well-connected globally and are increasingly tech-savvy. They have higher buying power and are willing to invest in products that make their lives more convenient and efficient. This places a premium on products with innovative features.

In a competitive market, simply launching a new product is not enough. To stand out and succeed, brands need to constantly evolve and differentiate themselves through innovation. This is where R&D comes into play. It can also help brands design products tailored to different age groups and specific needs in India.

COMMUNICATIONS: PAVING THE WAY FOR CONNECTIVITY

The importance of reliable communication cannot be overstated, especially in a vast and diverse country like India. The new 5G technology is a game-changer, promising super-fast Internet and connections, but there are big challenges. We need to invest in R&D to make the technology and systems that will bring 5G to all parts of the country.

The telecom equipment manufacturing industry has the potential to generate more than 1.7 million jobs in India by 2025.

To explain how urgent this is, think about how fast mobile data usage is growing in India. Consumer data consumption in India will grow at a CAGR of 16% between 2022 and 2028, moving up from 26GB (per user per month) recorded at the end of 2022. This means we need to spend a lot on R&D to make sure 5G can work well for all kinds of Indian consumers, whether they live in big cities or far-off villages.

NETWORKING: STRENGTHENING DIGITAL HIGHWAYS

Just as roads need maintenance, digital highways need continuous improvement to ensure the seamless flow of data. The surge in Internet usage, both for work and leisure, requires innovative networking solutions. R&D is the key to creating efficient and cost-effective technologies that can adapt to the country’s diverse topography and population density.

In 2021, India had approximately 624 million Internet users, making it the second-largest online market globally. This statistic emphasises the pressing need for R&D in networking solutions to ensure that these millions of users can access fast and reliable Internet services regardless of their location.

TELECOM EQUIPMENT: SELF-RELIANCE AND JOB CREATION

India’s aspiration to become a global manufacturing hub hinges on the local production of telecom equipment. Currently, India relies on imports for some essential telecom equipment, which poses challenges to self-reliance. R&D can address this by enabling companies to design and manufacture telecom equipment that meets the unique demands of the Indian market.

Creating indigenous telecom equipment is not only a strategic move for self-reliance but also a significant job creator. A report by Invest India indicates that the telecom equipment manufacturing industry has the potential to generate more than 1.7 million jobs in India by 2025.

DEVICE MANUFACTURING: CUSTOMISATION FOR DIVERSE NEEDS

The Indian consumer base is incredibly diverse, with varying age groups, lifestyles, and needs. One of the critical roles of R&D is to understand and cater to this diversity. By investing in research and development, manufacturers can create products that align with specific consumer requirements.

A strategic allocation of around 10% of the budget for R&D can significantly contribute to technological growth and innovation.

In 2020 a record 54.3 million smartphone units were shipped during the quarter with 17% year-on-year growth in the third quarter of the year. This growth underscores the importance of customisation through R&D to cater to the diverse and evolving needs of Indian consumers.

FUELING THE FUTURE

The electronics market in India stands at a crucial juncture, and R&D is the engine that can drive it forward. A strategic allocation of around 10% of the budget to R&D can significantly contribute to technological growth and innovation. It is not merely about creating products; it’s about creating products that resonate with the diverse and dynamic Indian consumer base.

To summarise, the need for greater investment in R&D in India’s electronics industry is backed by facts and figures. The statistics tell a compelling story of growth, opportunity, and the pressing need for innovation. It’s a call to action for electronics brands to invest in research and development, paving the way for a brighter and more connected future for India’s electronics sector.

By Aneef Tas

Tas is the Founder and CEO of Endefo.

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