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India Takes its Place in Global Data Economy

Updated: Dec 6, 2021

Today India has the world’s second largest internet population (after China) with over 700 million people online. By 2025 this is expected to have swelled to 924 million.

According to the Nokia Mobile Broadband India Traffic Index 2021 data usage increased by 36% in 2020 through increased usage of smartphones and fixed wireless access. Indian mobile internet users consume 8.3 GB of data each month.

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Behind these figures lies a concerted political investment in digitalisation.

Prime Minister Modi’s Five ‘I’s policy includes two that are directly driving the data centre market – 'Innovation and Infrastructure.'

The country’s Draft Data Centre Policy seeks to establish India as a ‘Global Data Centre’ hub and will do so by giving the data centre industry infrastructure status and so aligning it with these national policy objectives. New data sovereignty laws are also expected to drive demand as more businesses are required to store and process data within the country.

Recently quoted in The Policy Times, the Chairman of Telecom Regulatory Authority of India (TRAI), Shri P D Vaghela said;

“The country needs to transform from consumer to producer of technology [and with] rising data demand, the role of data centres attains equal importance towards becoming self-reliant in the digital space”. IT association NASSCOM’s suggests in a recent report that India with increasingly digitalised economy and a deep pool of engineering talent, is well placed to win a larger share of global data centre investments.

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