JOIN USMobile economy in India will contribute around $400 billion to the country's gross domestic product (GDP) and create 41 lakh jobs by 2020, a report by global mobile operators industry body GSMA has said.
Mobile economy will also lead to investments of $9 billion in the telecom infrastructure, with $34 billion contributed to public funding, said the “Mobile Economy India 2013”, a report based on the socio-economic impact of the mobile industry in the country. The report has been prepared by GSMA in collaboration with the Boston Consulting Group.
“The Indian mobile industry is fast-paced and innovative, but it currently lacks the regulatory environment to support its ambitions,” GSMA Director General Anne Bouverot told reporters after releasing the report. The mobile ecosystem generated about 5.3 per cent of India's GDP in 2012, directly supported 7.3 lakh jobs and an additional 20 lakh jobs when points of sale and distributors were included, she added.
However, the telecom sector is now suffering due to lack of long-term policies like those on the allocation of radio frequencies and other related issues, said Bouverot, suggesting that to increase mobile coverage in rural areas, the government should have a more flexible spectrum policy.
She also said that to increase the efficiency of spectrum use, the government should clear the way for market-driven sharing and trading of spectrum. Besides, the government should also adopt lower spectrum reserve prices.