India Telecom Sector Seeks Higher Value Capture Amid Rapid Market Growth

India's mobile and network equipment market is projected to expand from $25 billion in FY25 to $50 billion by FY32, growing at nearly double the global pace. Although domestic handset production reached 6,270 billion rupees in FY26, local value addition in telecom equipment remains under 20%. The sector faces an assembly paradox where manufacturing output is high, but critical components worth over 80% are imported from foreign markets.

As global mobile network traffic surges from 203 to 515 exabytes per month between 2025 and 2030, revenue growth is failing to keep pace. Meanwhile, major technology firms are expanding artificial intelligence infrastructure investments. Key equipment providers are building capacity, with Tejas Networks Ltd. (NSE:TEJASNET) supplying gear for about 97,000 BSNL sites and securing international commercial orders, while HFCL Limited (NSE:HFCL) signed a $1.11 billion optical cable agreement. Internationally, Verizon Communications Inc. (NYSE:VZ) finalized a fiber deal worth over $1 billion with Google.

To increase domestic value capture, strategic efforts are shifting toward component deep-end development, backed by funding for projects like a 4.93 billion rupee telecom manufacturing zone in Gwalior. Industry growth through 2030 will rely on scaling domestic semiconductor capabilities, deepening component ecosystems, and converting announced capital projects into operational capacity.