Union Budget: Ethernet switch duty cut to recharge telcos' data centre, broadband plans
carrier-grade Ethernet switches to 10% in the budget, telecom industry executives and sector analysts said.
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«Carrier-grade Ethernet switches are used in setting up data centres. Such Ethernet switches are used to connect servers in data centres and deliver last-mile connectivity for wired and rural broadband rollouts,» a senior telecom industry executive said.
Finance minister Nirmala Sitharaman's latest proposal comes at a time when data centres are emerging as a key element of broadband communications infrastructure. The telecom regulator estimates that the country's data centre market will grow at 11.4% compound annually, surpassing the $5 billion mark this year amid a deepening focus on digital delivery of services.
Increasing digitisation and internet penetration along with the rollout of pan-India 5G networks by Bharti Airtel and Jio, rising AI adoption, prominence of smart technologies, IoT-powered devices and big data is expected to give a further thrust to the data centre market.
Some of India's biggest conglomerates have set up data centres in recent years. In 2021, Adani Enterprises announced a $122 million investment in a JV with global DC operator EdgeConneX. In 2023, Reliance announced an ambitious DC venture with Brookfield Infrastructure.
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