It gives me great pleasure to launch Dun and Bradstreet (D&B) India’s publication ‘Indian Telecom Industry’ that brings to the fore the current status of this industry. With D&B’s global footprint and market reach this publication is certain to draw the attention of global industry leaders and policy makers.

The rapid growth of the Indian economy has garnered interest across the globe, and India has emerged as a favourable investment destination in the last few years. India has been one of the fastest growing economies during FY09, despite witnessing a moderation in growth due to the ripple effects of the global financial crisis. In FY09, the country’s GDP is estimated to have grown by 6.7% as against a growth of 9.01% in the previous year. While the economic conditions have witnessed some improvement in the last few months, the GDP growth is expected to remain at a modest level during FY10 given the adverse impact of deficient monsoon on the agriculture sector.

Over the years, the telecom industry in India has emerged as the third highest recipient of FDI – a clear indication that the sector has tremendous potential. Moreover, the Indian telecom industry has been able to offer the lowest tariffs in the world due to the competitive environment that prevails in the sector. However, despite being the most competitive and high growth telecom market in the world, the rural market remains highly underpenetrated. This is a huge opportunity for further growth and service providers are expected to tap into this nascent opportunity in the near future. Combined with the proliferation of newer technologies involving wireless communications and initiatives such as e-Agriculture, e-Health, e-Education, and rural BPOs, telecom penetration in rural areas is likely to increase manifold.

India’s high potential in telecommunications will eventually be realised on the back of improving telecom infrastructure, favourable investment climate, competitive tariffs, positive reforms and policy focus on increasing rural telecom coverage.

David J. Emery
President Asia Pacific & Senior Vice President of the Corporation
Dun & Bradstreet