Economic Development and Growth under Telecommunication Sector in India – An Empirical Case Study

Abstract

Developing countries like India have realized the importance of communication in the later part of 20^th century. Indian Telecommunication sector has emerged as one of the critical components of economic growth required for overall socio-economic development of the country as there is a positive correlation between the penetration of mobile services and internet on the growth of gross domestic product (GDP) of a country. Telecommunication sector is one of the prime support services needed to promote growth and modernization of various sectors of an economy. Globalization, privatization and liberalization accelerated all round reforms in many sectors, especially in developing economies, in the world. Today, India’s Telecom sector stands second in the world in terms of market share. Based on the data available from Groupe Speciale Mobile Association (GSMA), this sector will create close to 4 million additional jobs by 2020. The government has ensured fair competition among service providers and a fair and proactive regulatory framework that has resulted in telecom services being available to consumer at affordable prices. Further, it has made concerted efforts at encouraging telecom equipment manufacture. The deregulation of foreign direct investment (FDI) norms has led to an increase in FDI in the sector.

Through this paper the researcher an attempt has been made to analyze the trends in the growth and development of Telecommunication sector in India. Not only that, researcher also shows that the socio-economic impact of Telecommunication sector in India or Indian. Researcher also considers the last 10 FY’s secondary data in this empirical study.