India is poised for significant growth in telecom manufacturing, with its telecom equipment market projected to expand from $25 billion in FY25 to $50 billion by FY32. The expected growth rate is nearly 2 times the global market’s pace, according to a new report by KPMG in India.
Titled “The Power Beneath Connectivity: India’s path to telecom technology leadership,” the report examines India’s growing role in the global technology value chain as telecom evolves into an intelligent digital infrastructure ecosystem.
The convergence of artificial intelligence (AI), telecom networks, semiconductors, cloud infrastructure and digital services is creating new opportunities for innovation. Initiatives such as the Telecom Manufacturing Zone (TMZ) aim to strengthen domestic manufacturing, testing, research and innovation, helping position India as a global telecom technology hub.
Mobile network traffic is expected to grow by around 17% annually between 2025 and 2030, while telecom operator revenues are projected to rise by only 2.7% annually. This gap highlights the challenge of turning growing network demand into higher revenues.
India’s manufacturing capabilities are also expanding. Handset production reached ₹6,270 billion in FY26, while telecom equipment import substitution reached approximately 60%.
The report introduces the “Telecom Intelligence Stack”, covering semiconductors, computing infrastructure, telecom networks, data, AI software, models, autonomous operations and applications. It outlines where future value, control and competitive advantage could emerge.
It’s currently stronger in software, network platforms and data-driven intelligence. However, it still has opportunities to build capabilities in advanced semiconductors and critical hardware.
Akhilesh Tuteja, partner and national leader for clients and markets and technology, media and telecommunications at KPMG in India, said India could become a creator of globally relevant technologies, platforms and intellectual property. He stressed the need for sustained investment in innovation, advanced manufacturing and collaboration.
Purushothaman KG, national AI leader and head of technology transformation at KPMG in India, highlighted the importance of building capabilities across software, computing infrastructure, network technologies and critical components.
The report calls for greater investment in semiconductors, software, radio systems, optical technologies and intellectual property. It also recommends stronger domestic technology ecosystems, more IP creation and deeper collaboration to improve it’s global competitiveness.
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