India Set to Become the World's Data Capital in Five Years: Telecom Minister

Scindia Highlights Digital Transformation Fueled by Telecom Revolution and Affordable Connectivity

India's Digital Leap: A Bold Prediction

Telecom Minister Jyotiraditya Scindia has made a bold assertion that India is on track to become the “data capital of the world” within the next five years, driven by a massive digital transformation and groundbreaking telecom infrastructure. Speaking at the Confederation of Indian Industry (CII) Annual Business Summit 2025 on May 29, Scindia emphasized how the nation’s rapidly growing data ecosystem and telecom penetration are redefining the global digital economy.

From Telecom to Tech Titan: The Evolution of India's Digital Economy

India’s digital-first economy has evolved at a remarkable pace over the past decade. Scindia credited the telecom revolution as the catalyst behind this transformation. With a subscriber base that has soared from 800 million to 1.2 billion, India is now the second-largest mobile market globally. Broadband access, too, has reached a staggering 940 million users, showcasing deep penetration across rural and urban areas alike.

The affordability of mobile data has played a pivotal role. Scindia recalled a time when making a phone call cost Rs 16 per minute. Fast forward to today, and 1 GB of data costs just Rs 9, a dramatic 97% reduction from Rs 287 per GB a decade ago. This affordability has unlocked unprecedented access to digital services, education, healthcare, and e-commerce across socio-economic segments.

“India’s data communication cost is now just 5% of the global average,” Scindia proudly stated — a statistic that underscores the country’s unmatched efficiency in scaling digital infrastructure at low cost.

Policy Push and Reform-Driven Growth

Much of this digital leap has been enabled by proactive government reforms, policy liberalization, and public-private partnerships. Programs like Digital India, BharatNet, and the Production-Linked Incentive (PLI) scheme for telecom manufacturing have strengthened India's digital backbone.

Further, the government has introduced the Sanchar Mitra Scheme, aimed at improving citizen engagement with telecom services. The initiative focuses on making grievance redressal easier and enhancing accountability within telecom operators.

On the question of satellite communication services, Scindia clarified that while the government facilitates spectrum allocation and licensing, it is up to the private telecom companies to develop and implement these services. He confirmed that two companies have already qualified, with a third close to meeting the regulatory benchmarks laid out by the Telecom Regulatory Authority of India (TRAI).

Defying Criticism Through Delivery

While critics have raised concerns about digital monopolies, privacy, and rural network coverage, India’s telecom trajectory demonstrates measurable progress in both access and equity. The minister's remarks counter such skepticism by presenting hard data on user base growth and declining costs. Even with challenges, India’s model of low-cost, high-volume digital infrastructure offers a blueprint for emerging economies.

A Data-Driven Future

As India accelerates toward becoming the global hub for data consumption and innovation, it does so with a unique blend of scale, affordability, and inclusivity. The next five years will be pivotal, not just in achieving the title of “data capital,” but in leveraging that position to drive innovation, create jobs, and empower every Indian citizen. If the current momentum is sustained, India’s digital journey may well become one of the defining stories of the 21st century.

(With agency inputs)