Rural telecom growth outpaces urban, narrowing digital divide: Economic Survey

telecom

• Rural and semi-urban telecom connections now outpace urban growth in India
• Tele-density rose from 75 percent in 2014 to 86.8 percent by November 2025
• Data prices fell from Rs 300 per GB in 2014 to Rs 8.3 per GB in 2025

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India’s telecom expansion over the past decade has been powered increasingly by rural India, with village and semi-urban connections growing faster than urban additions, a shift, the Economic Survey said, signals a steady narrowing of the country’s digital divide.

Tele-density has climbed from 75% in 2014 to 86.8% by November 2025, with total telephone connections crossing 1.2 billion, up from about 933 million a decade ago. The sharper rise in rural connectivity highlights improved digital inclusion and broader access to communication services beyond metropolitan centres, the survey, which was tabled in Parliament on January 29, said.

Telecommunications, contributing about 1.2% to India’s gross value added (GVA), now form a critical backbone of the digital economy, supporting service delivery and productivity across sectors.

Internet adoption has surged alongside basic connectivity. Subscriptions expanded from around 25 crore in 2014 to 101.8 crore by September 2025, reflecting a decisive shift toward data-driven consumption. Average monthly data usage per subscriber has soared from 62 MB in 2014 to nearly 25 GB by mid-2025.

A steep fall in data tariffs has underpinned this transformation. Wireless data prices have plunged from roughly Rs 300 per GB in 2014 to Rs 8.3 per GB in 2025, making mobile internet among the most affordable globally and accelerating mass adoption.

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The expansion has been supported by sustained investments in network infrastructure and domestic technology capabilities. India has developed indigenous 4G and 5G (NSA) core technologies, placing it among a small group of nations with end-to-end telecom stack capabilities. National initiatives such as 5G deployment, BharatNet, Digital Bharat Nidhi and 6G research have further strengthened reach and capacity.

As of December, India had 31.87 lakh mobile base transceiver stations and 8.48 lakh mobile towers, reflecting significant infrastructure build-out.

According to the Survey, the telecom sector’s transformation — marked by rising rural penetration, falling data costs and indigenous innovation — positions it as a foundational driver of inclusive digital growth and India’s broader economic ambitions.