Hindu Editorial Analysis : 29-April-2024
The telecom sector in India has recently seen a notable growth of 1.88% in adjusted gross revenue (AGR), reaching an impressive Rs 67,835 crore in the third quarter of FY24 (October-December). This growth highlights the sector’s significant contribution to India’s economy.
Importance of the Telecom Sector
The telecom industry plays a crucial role in India’s economic growth and development. Here are some key points on its importance:
- Empowerment and Poverty Reduction: The sector empowers people by providing them with access to essential services and information, which helps in reducing poverty.
- Economic Growth: It unlocks economic opportunities and fosters growth across various industries.
- Employment Generation: The telecom industry creates numerous job opportunities, enhancing livelihood options for many.
- Foreign Direct Investment (FDI): It attracts investments from abroad, boosting the economy.
- Digital Transformation: The sector is essential in transforming services like education, healthcare, and finance, making them more accessible.
Moreover, Target 9c of the Sustainable Development Goals (SDGs) aims to significantly increase access to information and communications technology. The goal is to ensure universal and affordable internet access, particularly in least-developed countries by 2020.
Role During the Pandemic
During the Covid-19 lockdown, the telecom sector was crucial in:
- Healthcare Management: It enabled remote healthcare services.
- Education: Uninterrupted education was made possible through online classes.
- Essential Services: Various essential services continued to function smoothly thanks to telecommunications.
Related Initiatives
Several government initiatives have bolstered the telecom sector:
- National Digital Communications Policy 2018: This policy aims to enhance digital infrastructure.
- BharatNet Project: It focuses on expanding internet access, particularly in rural areas.
- 100% FDI Approval: The government allows full foreign investment in the telecom sector to attract more capital.
- Production Linked Scheme: Launched in 2021 with a budget of INR 12,195 crore, this scheme incentivizes the manufacturing of telecom products in India.
- Telecommunications Act, 2023: This act allows the sharing and leasing of spectrum to improve service delivery.
Challenges Ahead
Despite advancements, challenges remain in the telecom sector:
- Quality of Service: While services are more affordable, quality issues persist.
- Consumer Issues: Problems like call drops, spam calls, and cyber fraud continue to affect consumers.
- Competitive Dynamics: Aggressive pricing strategies have transformed the market, creating affordability but also leading to sustainability concerns.
Why In News
The telecom sector witnessed a remarkable 1.88% sequential growth in adjusted gross revenue (AGR), reaching Rs 67,835 crore in the third quarter (October-December) of FY24, reflecting the industry’s resilience and adaptability in a rapidly changing digital landscape.
MCQs about Growth of the Telecom Sector in India
- What percentage growth did the telecom sector experience in adjusted gross revenue (AGR) in the third quarter of FY24?
A. 1.58%
B. 1.88%
C. 2.00%
D. 2.5%
- Which of the following initiatives aims to enhance digital infrastructure in India?
A. BharatNet Project
B. Digital India Campaign
C. Make in India Initiative
D. Startup India Program
- What was one of the critical roles of the telecom sector during the Covid-19 lockdown?
A. Increasing tariffs on services
B. Enabling remote healthcare services
C. Closing educational institutions
D. Reducing internet speed
- Which challenge continues to affect consumers in the telecom sector despite advancements?
A. Increased job opportunities
B. High-quality services
C. Call drops and cyber fraud
D. Higher foreign investments
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