The article is an evaluation of the growth of the Indian telecom sector in light of its innovative capabilities and production of intellectual property. The low patent footprint and investment in research and development of the Indian telecom sector shows a lack of focus on innovation and intellectual property creation by the domestic telecom industry, and it is argued that this prevents the sector to tap into its full potential. The economic growth of the telecom sector must be seen holistically, meaning that domestic Indian telecom companies must be internationally competitive and occupy a higher place in the telecommunications value chain. This article argues that regulatory focus needs to shift towards encouraging and protecting intellectual property in India, so as to incentivize investment in expansion of technological capabilities through R&D.