India stands at the cusp of a digital revolution, positioned to establish itself as a global leader in connectivity and innovation. With over 900 million internet users as of 2024 and data consumption growing at an impressive 54% CAGR, the country’s digital infrastructure is undergoing rapid transformation. Sudhir Kunder, Chief Business Officer at DE-CIX, shares his vision for India’s digital future, emphasizing the importance of scalable infrastructure, inclusive connectivity, and innovation in emerging technologies like 5G, IoT, and edge computing. By fostering collaboration among key stakeholders and leveraging interconnection as a catalyst for growth, India has the potential to lead the world in digital transformation and economic advancement.
TAM: How can India position itself as a global leader in digital connectivity and innovation?
Sudhir Kunder: India is at a pivotal moment in its digital evolution. With one of the fastest-growing digital economies and a massive internet user base crossing over 900 million internet users as of Dec 2024,and is projected to surpass 1 billion users by 2027, making it essential to scale its digital infrastructure. With India’s average monthly data consumption surging to 20.27 GB per user, up from just 0.27 GB in 2014-15, the country has witnessed an impressive 54% CAGR in data consumption, primarily driven by 4G (82.7%) and growing 5G adoption (16.9%).
The country has the potential to lead global digital connectivity. To achieve this, India must focus on strengthening its internet infrastructure, promoting open access interconnection, and fostering innovation in emerging technologies such as 5G, AI, and IoT. Collaboration between government bodies, enterprises, and technology providers will be key to ensuring seamless connectivity and global leadership in digital transformation.
TAM: What key strategies are essential for building a resilient and scalable digital infrastructure in India?
Sudhir Kunder: Building a resilient digital infrastructure requires a multi-pronged approach. First, expanding data center capacity and interconnection points across Tier 2 and Tier 3 cities is crucial to decentralizing internet traffic. Second, fostering public-private partnerships can help accelerate infrastructure investments. Third, leveraging cloud-based networking solutions and software-defined interconnection can ensure flexibility, scalability, and security. Lastly, regulatory policies should encourage local and global enterprises to invest in India’s digital ecosystem.
TAM: How do you envision addressing the connectivity gaps in underserved regions in India to ensure a more inclusive digital economy?
Sudhir Kunder: India’s internet connectivity has witnessed remarkable growth, but rural areas still lag behind urban centers. As of 2024, India had nearly 954 million internet connections, a dramatic increase from 302.33 million in 2015. However, despite 70% of India’s population residing in rural areas, urban centers still account for the majority of connections, with 556 million internet connections in 2024
Addressing connectivity gaps requires a combination of innovative technology solutions and policy interventions. Satellite internet, fiber-optic expansion, and wireless technologies like 5G will play a major role in bridging the digital divide. Additionally, deploying local interconnection hubs closer to underserved regions can optimize traffic flow and reduce latency. Government initiatives like BharatNet, along with private sector investments, can further drive digital inclusivity.
TAM: How does interconnection drive digital transformation and economic growth in emerging markets like India?
Sudhir Kunder: Interconnection is the backbone of digital transformation. It ensures low-latency, high-speed data exchange between networks, cloud providers, and enterprises. In emerging markets like India, a robust interconnection ecosystem boosts economic growth by enabling businesses to scale efficiently, reducing operational costs, and enhancing user experiences. Studies suggest that every 10% increase in broadband penetration can boost GDP growth by 1.38% in emerging economies. Additionally, peering and interconnection services have been shown to reduce latency by up to 50% and cut transit costs by nearly 40%, making them critical for business scalability. A well-established interconnection fabric fosters innovation across industries like e-commerce, fintech, edtech, and healthcare, ultimately driving India’s digital economy forward.
TAM: What role does leadership play in navigating the challenges of India’s rapidly evolving digital ecosystem?
Sudhir Kunder: Leadership plays a crucial role in navigating the challenges of India’s rapidly evolving digital ecosystem, especially in the technology sector. Our focus should be on anticipating technological shifts, fostering innovation, and ensuring that our strategies align with India’s digital growth objectives. With the rise of AI, IoT, 5G, and cloud computing, it is essential to drive investments in scalable and future-ready infrastructure that enhances connectivity and supports digital transformation.
Leadership is about building strong collaborations—whether with government bodies, industry players, or technology providers—to create an ecosystem that fosters growth and inclusivity. By driving strategic partnerships, fostering innovation, and ensuring a secure and scalable digital infrastructure, leadership plays a pivotal role in shaping India’s position as a global technology powerhouse.
TAM: How can India balance the demands of growth, innovation, and security in shaping its digital future?
Sudhir Kunder: Balancing growth, innovation, and security in shaping India’s digital future requires a multi-dimensional approach. India must foster innovation through strong investments in R&D, emerging technologies like AI, IoT, and 5G, and policies that encourage startups and enterprises to experiment and scale. At the same time, the government and industry stakeholders must work together to establish a secure digital ecosystem by implementing stringent data protection regulations, strengthening cybersecurity frameworks, and promoting ethical AI deployment. Striking this balance will ensure that India not only remains a global hub for digital transformation but also safeguards its infrastructure, businesses, and citizens against evolving cyber threats.
TAM: As digital connectivity evolves, what key trends do you foresee influencing the future of Internet Exchanges in India, particularly in terms of supporting technologies like 5G, IoT, and edge computing?
Sudhir Kunder: The future of Internet Exchanges (IXs) in India will be shaped by several key trends. The adoption of 5G for enterprises will lead to increased demand for low-latency interconnection and distributed peering models. IoT proliferation will drive the need for enhanced data processing at edge locations. Edge computing, coupled with IX expansion, will help businesses process and exchange data closer to the source, improving efficiency and reducing network congestion. These advancements will make IXs more critical than ever in optimizing India’s digital infrastructure.
TAM: What role does DE-CIX play in positioning India as a leader in cross-border data exchange and digital collaboration?
Sudhir Kunder: India’s digital influence is rapidly expanding, with interconnection playing a key role in this transformation. At DE-CIX India, we are strengthening the country’s position in cross-border data exchange through strategic collaborations with global partners like GCX and e& (Etisalat). Our partnership with GCX extends DE-CIX’s reach via their submarine cable systems, enabling seamless, secure, and scalable international connectivity. Meanwhile, our alliance with e& is revolutionizing the digital landscape by enhancing regional content distribution, bringing Indian content closer to users in the UAE, and driving the growth of Internet traffic across the Middle East and India.
These collaborations position DE-CIX India as a pivotal enabler of global interconnection, ensuring that businesses can connect and expand effortlessly on an international scale. By expanding our interconnection ecosystem and integrating with global networks, we provide enterprises with world-class services like peering, DirectCLOUD, and cloud routing. These solutions not only support businesses in scaling globally but also ensure compliance with local and international data regulations. As India cements itself as a hub for digital services, DE-CIX continues to drive innovation and foster seamless interconnectivity, ensuring the country’s leadership in global digital collaboration.
Conclusion
India’s digital future holds immense potential, with over 900 million internet users and data consumption surging at a 54% CAGR. As the world’s second-largest internet market and a leader in affordable mobile data, India is rapidly scaling its digital infrastructure. The country ranks among the top five globally in AI adoption and has the third-largest startup ecosystem, driving innovation in 5G, IoT, and cloud computing. By strengthening interconnection, expanding digital infrastructure, and fostering inclusive growth, India is shaping the future of digital interconnectivity and emerging as a key player in the global digital economy.
