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As the US-China trade conflict intensifies, India’s telecom sector is well positioned to capitalize on shifting global supply chains. According to local industry association Voice of Indian Communication Technology Enterprises (Voice), the time is opportune to replace Chinese telecoms in the US. “Our telecom exports can see a quantum jump if we play our cards right,” said RK Bhatnagar, director-general of Voice, according to Indian portal Telecom.com.
According to Ernest & Young (EY), India exports approximately $6 bn worth of telecom equipment to the US.
The United States under President Donald Trump imposed a 145% tariff on Chinese imports, while Indian goods face tariffs of 26%. This significant difference in tariffs, plus the rip-and-replace program in the US, designed to remove equipment from Chinese network operators, gives Indian telecoms a competitive edge, according to industry experts.
India is already the world’s second largest exporter for telecommunications, computer, & information services. In general, the country’s telecom sector is well place for growth.
India’s advantage lies in its scale, skilled workforce, and the government’s targeted support for high-tech manufacturing in form of incentives and schemes. In 2024, the Indian telecom equipment market size was estimated at $22.5 bn and is projected to reach $49.7 bn in 2032.
As Western economies look to derisk their supply chains, India’s blend of policy support and market maturity positions it as a leading alternative.
“The Indian telecom sector has transitioned from a fragmented market to an oligopolistic structure dominated by only three players, and is now well positioned to benefit from India’s demographic dividend and the monetization of the burgeoning demand for connectivity,” a recent market assessment by investment bank William Blair notes.
The government furthermore is supporting the sector with “significant investment” marked down in its Union Budget for the 2025-26 fiscal year. “[It is] fostering affordability, infrastructure development, and self-reliance while paving the way for next-gen digital services”, EY wrote in a market insight. “The continued emphasis on network expansion, fiscal incentives, and ease of doing business sets the stage for sustained growth and innovation in the sector.”
