"The policy aims to target 20 million broadband subscribers and 40 million Internet subscribers by the end of 2010," Information Technology Minister Dayanidhi Maran said, pledging tax breaks to equipment makers.

The number of Internet users stands at 0.2 percent or 2.36 million of India's one billion plus population, India's hardware industry body MAIT says. Broadband penetration reaches 0.4 percent of the population.

The policy document said Internet and broadband penetration was much lower than in other Asian countries but gave no comparative figures.

India's booming domestic IT industry has been demanding better infrastructure for Internet connectivity, saying it is vital to provide speedy outsourcing services to clients abroad.

Improving broadband infrastructure would also help achieve social goals such as improving tele-education and long-distance medical services in the sprawling country where school and medical facilities are poor in many areas, as well as allow easier access to entertainment, the paper said.

The policy document said the government will increase broadband connectivity by using more fibre optic technologies instead of copper wires as well as utilising television cable wires to provide high-speed Internet facilities.

Satellite and wireless technologies could help bolster infrastructure further, it added.

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