India is witnessing an unprecedented surge in mobile data consumption, fuelled by the rapid rollout of 5G networks and the growing affordability of 5G smartphones. Faster speeds, low latency and some of the world’s cheapest data tariffs have transformed how Indians consume digital content—from high-definition video streaming to mobile gaming and social media. However, as data usage accelerates across urban and rural markets alike, the government is now evaluating a proposed Re 1 per GB data usage levy. This move could reshape the economics of internet access in India, raising important questions about affordability, telecom sector revenues and the future trajectory of the country’s digital growth.
India is witnessing a sharp rise in mobile data consumption driven by the rapid adoption of 5G smartphones and the expansion of high-speed network services. As more users shift to faster connectivity, initiatives such as fixed wireless access powered by 5G have also contributed to increasing the national average data usage per user in 2025.
Despite overall smartphone shipments growing only marginally by 0.5% year-on-year to 151 million units in 2025, shipments of 5G smartphones rose significantly by 14% to reach 137 million units. This growth has pushed India’s total installed base of 5G devices to around 415 million. According to brokerage CLSA, the installed base is expected to expand further to about 750 million by March 2028, even though the broader smartphone market may slow due to rising component costs.
5G smartphones currently dominate the Indian smartphone market, accounting for 90% of total shipments in 2025, compared with 85% in the previous year. A major driver of this shift has been the rapid growth in affordable devices, particularly in the sub-₹10,000 price segment, where shipments surged by an extraordinary 1,900% year-on-year. The expansion of 5G coverage by telecom operators has further accelerated adoption across the country.
The wider availability of 5G has significantly boosted data traffic. India’s 5G data consumption nearly doubled from around 15,000 petabytes in late 2024 to approximately 29,000 petabytes by December 2025, marking a 93% increase. As a result, 5G now contributes about 40% of the country’s total wireless data traffic.
Higher speeds and lower latency are encouraging users who migrate from 4G to 5G to consume two to three times more data. Activities such as short-form video streaming, high-definition content viewing, and mobile gaming have further accelerated data usage. Consequently, the national average data consumption per user increased from 21.5 GB per month in early 2025 to 29.9 GB by the end of the year.
Among telecom operators, Reliance Jio recorded the highest growth in average data consumption, followed by Bharti Airtel and Vodafone Idea. The surge in demand has been particularly strong in rural areas, where data usage grew about 3.2–3.4 times, largely driven by the adoption of entry-level 5G smartphones.
Telecom operators are now exploring ways to monetise the rising data consumption to improve their average revenue per user.
India’s digital landscape has expanded rapidly over the past decade. The country had nearly 1.02 billion internet users by September 2025, a sharp rise from about 250 million in 2014. India is also the world’s second-largest smartphone market, with around 750 million devices in use.
The country is home to about 500 million unique social media users, according to research firm DataReportal. It estimates that YouTube has around 500 million users in India, followed by Instagram with 481 million and Facebook with 403 million users. Snapchat has about 213 million users, while X, owned by Elon Musk, has around 22 million users in the country.
India’s rapidly expanding digital ecosystem is also reflected in the surge in data consumption. Government data shows that average monthly data consumption per user has increased nearly 399 times, rising from 62 megabytes in 2014 to roughly 24 gigabytes in 2025, among the highest levels globally. This high level of usage is supported by very low data costs, averaging about 10 cents per GB, one of the cheapest rates worldwide.
Social media plays a dominant role in daily online activity. According to a 2023 report by the research firm Esya Centre, Indians spend an average of 3.2 hours per day on social media applications.
India’s demographics also influence digital usage patterns. About 24% of the country’s population is younger than 14, according to United Nations data. While precise figures on children’s social media usage are limited, a 2024 survey found that nearly 90% of children aged 14 to 16 have access to smartphones at home. The survey also indicated that recreational use accounts for a large share of screen time among teenagers. Around 76% of children in this age group reported using smartphones to access social media, while 57% used the devices for educational purposes.
The Indian government is considering a proposal that could significantly change how people use the internet in the country. According to media reports, a review meeting of the telecom sector chaired by Prime Minister Narendra Modi discussed the possibility of introducing a tax on mobile data usage. The proposal involves the Department of Telecommunications (DoT) analysing the feasibility of imposing a Re 1 per GB charge on mobile data consumption. If implemented, the move could make internet access more expensive for users in a country known for having some of the world’s cheapest data rates.
The idea was discussed during a high-level meeting in January 2026, and the DoT has been asked to submit a detailed proposal by September 2026. The main objective behind the plan is to generate additional revenue for the telecom sector while also discouraging the misuse or excessive consumption of mobile data.
India currently ranks as the world’s largest consumer of mobile data, reflecting the widespread availability of affordable smartphones and low-cost data plans. According to TRAI statistics for FY25 (April 2024–March 2025), more than 800 million internet users in the country consumed about 229 billion GB of mobile data during the year.
At present, the government primarily earns revenue from the telecom sector through spectrum auctions and licence fees. However, if a Re 1 per GB levy is introduced, it could generate around ₹22,900 crore annually for the government.
While the proposal could generate higher revenues for the government, it may also raise concerns among consumers who have long benefited from India’s affordable internet access.
India’s rapid digital expansion, driven by affordable data, widespread smartphone adoption and the rollout of 5G, has transformed the country into one of the world’s largest internet and mobile data markets. While rising data consumption reflects deeper digital integration across society, policy decisions such as a potential data usage levy could reshape this landscape. Balancing revenue generation with affordable internet access will remain crucial to sustaining India’s digital growth and inclusion.
Read more
Mobile data could be costlier in India
India’s data center boom
Digital 2026: India
FAQ
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.