The Indian government is likely to fund around $2 billion for creating indigenous technology development for 5G and IoT (Internet of Things) so that they can leverage $660 billion India opportunity. This development will create 5G and IoT equipment ecosystem in India which can be deployed for all verticals say telecom, defence, automobile, healthcare, agriculture, mining, education, highways and others.
The government fund will be distributed to IoT startups, software companies, fabless chip companies, IT companies, testing & validation companies, test labs, academic institutes, transmission companies and others focused on R&D related to 5G and IoT. This step by the government is beneficial for India in multiple ways and is an excellent step for the country to showcase its technology power in the long run.
First, the government can control fiscal deficit with respect to electronic devices and network equipment which is skyrocketing in a big way and will further increase in absence of indigenous development of 5G and IoT which is going to touch all verticals.
According to industry estimates, 5G and IoT equipment requirement will be in the range of $660 billion in the next ten years and Indian operators can deploy indigenous technologies which can be localised with respect to Indian requirements.
Second, this scheme of the government will give a big boost to the startup community as the government has plans to achieve 50,000 startups by 2024. Success of startups in 5G and IoT will open up new avenues in service and other sectors which can be leveraged by startups in the long run.
Third, the scheme is planned to provide direct and indirect employment of around 6 crore jobs in the country which is a large number considering the present employment rate in the country. This will also give lot of stimulus to the overall R&D development ecosystem in the country.
Fourth, it will also boost export market for 5G and IoT equipment market globally, which can be leveraged by Indian companies. This market is also big and Indian companies should take lead in all the sub-segments of 5G and IoT ecosystem.
Fifth, it will give fillip to the India economy as it will create lot of unicorns from India which will be leveraged once they get listed in Indian stock market. If worked properly, our unicorns will be most sought after by global economy. The success of startups and established companies in 5G and IoT will also benefit the government in terms of taxes.
Sixth, it will also help in eliminating malware and meeting security requirements of Indian government so that network and device is full proof for a security point of view as we have hostile neighbours and we have to guard our critical infrastructure across all states.
The government has already done two rounds of meeting and has shown its intent to fund this scheme. Presently, the government is working on the modalities and also finalising on quantum of funding and funding process. It is expected that indigenous development of 5G and IoT equipment and products will start in 2019 so that the final product comes latest by 2021.