The country is a global beacon for technology but there is a noticeable lack of investment in infrastructure and smart technology, says the report by the Centre for Research and Development in the Economy.
Its co-author, the economist Kunal Srivastava, believes that the reason is the high cost of the infrastructure and the lack of investments in digitalisation and communications.
In 2015, the country was the world’s fastest-growing smartphone market and this year it has overtaken the US as the world leader.
According to the report, the average monthly bill of mobile phone users is around Rs.2,200.
That is nearly three times higher than the national average of Rs.600.
The average cost of a phone call in India is about Rs.10,000.
Srivastav said the rise in mobile bill is a consequence of the country’s fragmented mobile infrastructure, with many carriers, such as Bharti Airtel, BSNL, Videocon and Idea, failing to provide adequate coverage in most of the cities.
India also lacks a proper network for the internet and it is a major hurdle in the country to start a business.
The report says the number of mobile calls per day in the capital New Delhi is around 2,600.
In the western state of Uttar Pradesh, which is home to the country of Uttarath, the number is over 8,000 calls per hour.
But in some of the other Indian states, such in Odisha, Rajasthan and Maharashtra, the numbers are more than 10,000 a day.
Sravastava said it is also difficult for people to move about and find jobs due to the high prices of basic services, including electricity, water and food.
The government has said it wants to address these issues by introducing a new national mobile card.
“If the government is serious about tackling this issue, it needs to consider how it can implement a smart card which will help people move around more easily and to do more business,” Srivav said.
The report suggests that the government should introduce an income-based card, with the highest-paying one earning Rs.100,000 per annum, to allow people to live in rural areas, with a lower income.