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The Union Cabinet is likely to take up the draft National Digital Communications Policy (NDCP) 2018 today , according to a senior official.
The NDCP 2018, once approved, is set to attract investments of ₹6.5 lakh crore in the digital communications sector by 2022, the source added.
The Department of Telecommunications (DoT) released the draft NDCP in May 2018. The policy proposes to improve connectivity and attract long-term, high-quality and sustainable investments. It also aims to rationalise multiple taxes and levies such as licence fee, spectrum usage charges, universal service obligation fund and GST. According to reports, telecom service providers in India pay more than 30 per cent of their revenues as taxes and levies, while telcos in the rest of the world pay only around 10 per cent.
Other objectives of the policy are to provide broadband for all, create four million jobs in the digital communications sector and enhance the contribution of the sector to 8 per cent of India’s GDP from around 6 per cent in 2017.
Growth in FDI
The telecom sector has been attracting funds over the last few years. Speaking at the “FDI in Telecom Sector: The Way Ahead” organised by DoT and Indian Institute of Foreign Infosys deploys digital banking solution at AMBTrade here on Tuesday, Minister of Communications, Manoj Sinha, said, “FDI in the telecom sector has grown nearly five times in the last 3 years, from $1.3 billion in 2015-16 to $6.2 billion in 2017-18.”
“As we move from telecom India to digital India, FDI is crucial to unlock key and emerging technologies such as machine learning and IoT and harness them,” he added.
Aruna Sundararajan, Secretary, Department of Telecom, said, “The country is more dependent on digital infrastructure than the rest of the world.” For instance, while 10 per cent increase in consumption of data corresponds to 1-1.3 per cent growth in GDP, in India, it corresponds to 3 per cent. The digital economy is set to reach $1 trillion. “The communications sector will be the poster boy for India’s growth in the future,” she added.
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