Telecom sector has not been impacted as dramatically by COVID-19 market disruption because of the newer use cases generated amongst its users. While the lockdown brought the economy to a halt, it created demand on account of people working-from-home, schools going online, home entertainment, and isolated consumers reaching out to friends and family.
The telecom operators emerged as a lifeline in keeping the world connected and contributed during the lockdown and social distancing period. Further, telecom facilitated digital transition of people and businesses at a pace much faster than it would have otherwise.
Assessing the impact from the supply side of handset and network equipment manufacturing, the global disruption in supply chain and suspension of facilities has significantly impacted this sector, however, a near-term bounce back is expected.
Telecom Regulatory Authority of India, Imagine a new connected world, KPMG in India and India Mobile Congress report, October 2019
The global supply chain re-alignment has positioned India uniquely in the global radar. With India being the second largest global market1 for smartphones and telecommunications, the telecom ecosystem manufacturers are thinking of bringing manufacturing supply chain closer to their customers. The recent policy reforms and incentives offered by the government are likely to further accentuate these realignments.
National digital communications policy
Phased manufacturing programme (PMP)
Promotion of manufacturing electronic components3
Incentives for handset manufacturers
Tax and compliances
Regulatory compliances and technology support
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