Santosh Maharshi blog on India, Social Tech, Digital Media & Bollywood

The link between mobile penetration and GDP

January 19, 2009 · Santosh Maharshi

Old Blog

Gaurav Mishra writes about the link between economical growth and mobile penetration. He points to an article in Economic Times which reports about the study title ‘‘India: The impact of mobile phones,’ conducted by the Indian Council for Research on International Economic Relations (ICRIER) (the report is yet to be released)

Indian states with 10% higher mobile phone penetration will enjoy 1.2% higher annual average growth rate than those with a lower teledensity.

The real benefits of telecommunications only start when a region passes a threshold penetration rate of about 25%. Many areas have still not attained that level.

Delhi’s penetration rate is in excess of 100% but states such as Bihar, Orissa, Assam and Madhya Pradesh have not yet reached the critical 25% threshold.

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