The contribution of mobile industry to the countrys GDP will increase to 8.

2 per
cent by 2020, a government report said today. The joint report, released by the
Department of Industrial Policy and Promotion and the Department of Telecom,
said the industry contributes 6.5 per cent to the GDP currently.

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The mobile industry in India, currently contributing 6.5 per cent ($140 billion) to
countrys GDP, and employing over 4 million people (direct and indirect), is
projected to grow rapidly in the coming years. By 2020, the industry is expected to
contribute 8.2 per cent to countrys GDP, the report said. It attributed the
projection to The Mobile Economy, India 2016 report of global telecom industry
body GSMA.

As per the previous data shared by former telecom Minister Ravi Shankar Prasad
in Parliament in December, revenue generated by the telecom sector in 2014-15
was Rs 2,42,900 crore, accounting for 1.94 per cent of total GDP.

However, the ratio of revenue size and its contribution in terms of percentage to the
GDP varies every year due to variation in the growth of economy, the minister had
said. In 2011-12, the telecom sector accounted for 2.1 per cent of GDP with
revenue of Rs 1,85,930 crore, while in the next year it stood at Rs 2,07,498 crore
(2.07 per cent of GDP).

The DIPP-DoT report said that the mobile industry will add 800,000 more jobs. In
terms of unique mobile phone subscribers, India is expected to cross the 1 billion
mark by 2020. India will see an increase in adoption of 4G services with number of
4G connections estimated to grow to 280 million by 2020 from just 3 million in
2015, the report said.

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vendor: IDC
Total Foreign Direct Investment in telecom sector from April 2014 to March 2016
was around $4.19 billion.

Investment in telecom operator Vodafone lead the chart with investment of

$1,500.79 million followed by Videocon International Electronics with $719.76
million, Telenor $573.15 million, Sistema Shyam Teleservices $451.83 million,
Bharti Infratel $240.37 million, Idea Cellular $123.22 million.

Mobile manufacturing units generated 38,300 new jobs in last two years with
Taiwanese electronics company Foxconn being top employer with workforce of
8,000.