Everyone is betting big on the telecom growth story as it is steadily gaining traction amidst the global financial turmoil. This sector has emerged as a big contributor to the GDP and has recorded a 42.2% growth in the quarter ended Sep ‘08.
Telecom is being seen as a significant contributor to the country’s foreign direct investment (FDI). The launch of 3G will give a big boost to services. The ministry has allowed foreign players to bid for 3G licences, that will in turn ensure increased attention from foreign investors. The industry attracted about $2bn as FDI during April to September this year, which is a significant jump from $1.2bn during the last calendar year.
India currently has a subscriber base of 373 million. The figures are expected to go upto 500 million by 2010 and 750 million by 2012. Financial projections also indicate that the revenue generated from this sector will grow from the current $20bn to $35bn in 2010.
Read the full story in The Economic Times here.