The Government of India is reportedly exploring a proposal to impose a ₹1 charge for every 1GB of mobile data consumed, a move that could significantly impact the country’s fast-growing digital ecosystem. The idea is currently in the preliminary stage and is being studied by the Department of Telecommunications (DoT).
According to sources, the proposal surfaced during a recent review meeting of the telecom sector, where officials were asked to assess the feasibility of introducing a data usage levy and evaluate its possible impact on consumers as well as telecom operators.
India’s Massive Data Consumption
Official estimates indicate that India consumed nearly 229 billion gigabytes (GB) of mobile data during FY2025. If a levy of ₹1 per GB is implemented, it could potentially generate around ₹22,900 crore in annual revenue for the government.
India is currently among the world’s largest mobile data consumers due to widespread smartphone usage and affordable internet services provided by telecom companies such as Reliance Jio, Bharti Airtel and Vodafone Idea.
Encouraging Responsible Digital Usage
Apart from revenue generation, the proposal is also reportedly being examined as a way to promote responsible digital consumption. Officials believe that a minimal data levy could discourage excessive internet use and help address concerns about rising screen time, especially among children and young users.
Telecom Sector Already a Major Revenue Source
At present, the government earns substantial revenue from the telecom sector through spectrum auctions, licence fees paid by operators, and an 18% GST on mobile recharge plans. The proposed data levy is being studied as an additional revenue stream to support the country’s growing digital infrastructure.
However, the idea has sparked debate among industry experts and analysts. Many warn that introducing a data tax could increase internet costs for millions of users, potentially slowing the growth of Digital Economy in India.
Experts have also pointed out that implementing a per-GB tax could be technically complex, as it would require accurate tracking of individual user data consumption across telecom networks.
For now, officials have clarified that the ₹1 per GB data levy is only under consideration, and no final decision has been taken by the government.
