Telecom sector share in GDP marginally up at 1.94% in FY15

Contribution of telecom sector revenue to gross domestic product (GDP) increased marginally to 1.94% in 2014-15, Lok Sabha was informed on Wednesday.

As per data shared by Telecom Minister Ravi Shankar Prasad, revenue generated by the telecom sector in 2014-15 increased to Rs 2,42,900 crore, accounting for 1.94% of total GDP, compared to previous fiscal's figure of Rs 2,19,553 crore (1.93% of the GDP).

However, the ratio of revenue size and its contribution in terms of percentage to the GDP varies every year due to variation in the growth of economy, the Minister said in a written reply to a question.

In 2011-12, the telecom sector accounted for 2.1% of GDP with revenue of Rs 1,85,930 crore, while in the next year it stood at Rs 2,07,498 crore (2.07% of GDP).

Talking about the steps taken for growth of the sector, Prasad said the government has formulated a comprehensive action plan which aims to address the issues facing the industry.

"These issues are broadly classified as related to policy strategies, broadband strategy, telecom infrastructure development, licensing and regulatory issues, management of spectrum, and strategy for revival of public sector undertakings," Prasad said.