Vodafone group chief executive Vittorio Colao told a business conference in New Delhi last week its Indian operations remain essential to its expansion plans, and that they are key in cash generation for it to beat the global economic slowdown.
Colao said: “The one goal is the strong generation of cash. That’s essential for building the future.”
A report, funded by Vodafone and published last week, said mobile technology is encouraging economic growth in India.
The report by the Indian Council for Research on International Economic Relations (ICRIER) found Indian states that have a 10 per cent mobile phone penetration level will have an annual average growth 1.2 per cent higher than other states.
Professor Rajat Kathuria leading the research said: “This analysis shows telecoms is a critical building block for the country’s economic development. The real benefits only start when a region passes a threshold penetration rate of about 25 per cent. Many areas have still not attained that level.”
The report showed a positive impact on small business, artists, rural farmers and the populations of urban slums.