Question

Industry: Telecommunications in India

Here, you need to discuss the sources of the growth pattern and how and why these sources affect the growth or decline of the industry. In addition, discuss the relationship between GDP growth rate and the growth rate of the industry. Moreover, discuss the effect of the growth of the industry on the growth of GDP, and/or the effect of GDP growth on the growth of the industry. Make sure you discuss the effect of different stages of the business cycles (recession and expansion) on the industry.

Conclusion

Provide your own final thoughts, opinion, and understanding of the different forces that impact the industry. In addition, state your thoughts about the future of the industry and provide recommendations for expanding it.

Answer 1

The telecommunications industry in India has grown as a function of the growth in GDP of the country and as economy has grown, the disposable income of the people has increased and this has resulted in people consuming more telecom services. Also the growth in technology with better phones coming at cheaper prices and more and more data available at lower rates has led to explosive growth in the segment.

The future of the industry in my opinion would be that telecom would be providing a backbone or platform on which various services such as e-commerce, on demand entertainment and rendering of government services would be provided.