Thursday, August 1, 2013

100% FDI in telecom

Government has approved 100 per cent foreign direct investment (FDI) in the telecom sector on August 01, 2013. It has been decided to increase FDI cap in telecom to 100 per cent from 74, up to 49 through automatic route and beyond that FIPB.

The idea behind increasing the FDI limit in the telecom sector is to help the industry get fresh funds to lower financial burden. The moves brings relief for foreign partners in telecom companies as they can have complete ownership of the business. "Foreign investors will no longer need to partner with Indian investors in order to comply with regulatory requirements".
Industry analysts believe 100 percent FDI in the telecom sector can attract investment of USD 10 billion in near to long term.