IMC 2024 showcases India as a must-consider for TMT investments

India is experiencing a digital revolution led by its embrace of mobile technologies. Access to mobile phones, better connectivity, low mobile data costs, and the ease of transferring money via a simple swipe using the Unified Payments Interface (UPI) and digital wallets are transforming economic, cultural, and social norms. Technology has even become integral to welfare programs, as benefits are now transferred directly to beneficiaries.

India is well-positioned to become the world’s third-largest economy by 2030. The country is looking to increase its share of manufacturing in global supply chains through its “Make in India” campaign and Production Linked Incentive (PLI) programs. The success of smartphone manufacturing in India is reflected in the increasing number of companies setting up manufacturing operations in the region. India is also looking to build a robust semiconductor ecosystem that will play a key role in global supply chains. On the telecom front, the race is on to increase the reach of 5G, and companies such as Starlink and Amazon’s Project Kuiper are looking to enter the connectivity market.

Against this backdrop, India Mobile Congress—Asia’s largest tech conference—was held in New Delhi in October. Prime Minister Narendra Modi inaugurated the event, followed by heads of the country’s top telecom players—Airtel, Reliance Jio, and Vodafone Idea—who delivered keynote addresses. Participants from numerous global enterprises and up-and-coming startups attended. HFS Research followed the event keenly, as it showcased the transition from a long-held view of India as a labor outsourcing provider to a nation with deepening technology ecosystems.

India’s connectivity boom is powering its digital economy

India has more than 1.15 billion mobile connections (for a population of 1.4 billion+), a significant jump from 771 million mobile connections in 2011. Driving this is the growing availability of smartphones and feature phones catering to all cost segments. Coupled with some of the world’s lowest data prices, this mobile proliferation is helping promote technology usage in providing digital public infrastructure. In India, 1GB of data is estimated to cost $0.04, while global data costs are significantly higher. Along with low data costs, coverage areas have increased, and speed has improved dramatically with the launch of 5G.

Exhibit 1: Four key pillars driving India’s digital success stories

Source: HFS Research, 2024

Improved mobile services and broader internet penetration drive innovation in the fintech, edtech, healthcare, and manufacturing sectors, fostering growth as enterprises scale to meet new demands. As a result of these investments, India is emerging as a leading market for digital transactions, with more than 40% of transactions conducted digitally. Its quick commerce market is experiencing significant growth, reaching $3.34 billion, and is expected to triple by the end of the decade.

With India’s growing digital footprint, businesses can leverage data insights to refine their offerings, personalize customer experiences, and drive operational efficiencies. This connectivity boom highlights the critical need and opportunity for investment in telecom infrastructure supporting rising data demand, enhancing network quality, and expanding coverage.

PLIs and “Make in India” aim to drive a manufacturing renaissance

In 2020, India launched the PLI program to boost domestic manufacturing, employment, and import substitution. Companies participating in the program receive direct financial incentives tied to sales or production volumes achieved, reducing their cost of production. The plan targets sectors such as high-tech and IT hardware, pharmaceuticals and medical devices, automobiles, renewables, telecom, networking products, and textiles. The growing tech-savvy market is already expanding to areas such as drones, semiconductors, and AI.

Samsung has built the world’s largest mobile manufacturing plant in Noida, doubling its annual production capacity from 68 million to 120 million phones. This factory is part of the company’s “Make for the World” strategy, producing phones for India and other countries in the SAARC region and beyond. Also, Apple is assembling the new iPhone 16 series in India at Foxconn’s facilities in Tamil Nadu. It is estimated that $14 billion worth of iPhones are being made in India, accounting for 14% of its global production.

Enterprises are also beginning to benefit from India’s PLI program by aligning their operations to leverage cost efficiencies, access a large domestic market, and tap into India’s growing role as a global export hub. By localizing production, building partnerships with local suppliers, and investing in workforce training, companies can optimize their supply chains and enhance resilience against geopolitical risks. With sector-specific incentives and a competitive manufacturing ecosystem, India offers a strong platform for businesses to scale operations, reduce costs, and drive global growth while aligning with the “Make in India” vision.

Enrolling more women in STEM programs is a key focus as India emerges as a source of AI talent

India is a talent hub for companies ranging from IT services providers with most of their workforce in India to global enterprises setting up worldwide capability centers and a booming startup ecosystem in the region. With a mix of young talent graduating from universities annually and an IT services ecosystem, India is now emerging as a hub for AI talent in the Generative Enterprise era. Companies are increasingly looking at India not just as a cost differentiator but for its innovation capabilities.

India is making significant progress in reducing the gender gap in technology by increasing the number of women enrolling in STEM (science, technology, engineering, and math) courses, with women now 40% of enrollees. Overall, there has been a surge in the enrolment of female students in higher education in the past decade, from 15.7 million to 20.7 million. Enterprises are looking to provide further stimulus by ensuring women have an equitable pathway to senior positions for women at companies.

The Bottom Line: India is now a strong contender for enterprise technology and telecom investments.

India’s rapid digital transformation, driven by affordable data, robust public-private partnerships, and progressive policies such as the PLI program, positions the country as a global leader in technology and telecom. Global enterprise leaders must recognize India as an emerging leader in manufacturing, connectivity, and mobile-first platform adoption. Local and national government programs and investments shape India’s dual role as a strategic supplier—and consumer—in the global technology ecosystem. This powerful combination of factors makes India a critical investment destination for enterprises worldwide.