Telstra has signed a network-to-network interconnections deal with Tata Communications to exploit the booming Indian economy.

The Network-to-Network Interconnection (NNI) will use Tata Communications' 116 Points of Presence (PoPs), extending Telstra's reach to tier-2 and tier-3 Indian cities such as Jaipur, Surat and Trichy.

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Telstra global enterprise and services, head of connectivity and platforms portfolio, Bernadette Noujaim Baldwin, said the new arrangement was part of Telstra's broader multi-protocol label switching strategy, which includes NNI agreements in emerging markets that are of high value to customers and the expansion of its own on-net PoPs.

"The latest estimates from a PricewaterhouseCoopers report predict India is set to become the third largest economy in the world by 2030. When you combine this with its young and burgeoning working-age population, you've got a compelling consumption boom and a competitive edge that sets Asia's third-largest economy apart from many other countries," she said.

"With these economic and social indicators in mind, we're seeing demand for data connectivity throughout India grow as an increasing number of Asian, European and American headquartered businesses look to India for long-term growth opportunities."

She said Telstra was focused on providing services to large multinational companies that were expanding across Asia and the rest of the world, which was why it was leveraging Tata Communications' deep network footprint to extend its service coverage throughout India and provide customers the same security, redundancy and quality of service offered on the Telstra network.

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Through the partnership, Telstra and Tata Communications have defined roles and responsibilities for the management of the NNI to ensure the delivery and support for services in the region, according to a company statement.

By leveraging Tata Communications' domestic infrastructure and global sub-sea fibre network, users will benefit from reduced latency and increased network availability.

Tata Communications vice president, managed networks services, James Walker, said India was a key emerging market.

"Our position as a company founded in India, coupled with our tier-1 network which circles the globe, allows us to provide international customers with best-in-class performance and coverage across India and beyond," he said.

"We are pleased to be working with Telstra to provide their customers the high level of connectivity support and access needed for growth and global investment into this key region."