According to the data published by the Department of Industrial Policy and Promotion (DIPP), the telecom sector received foreign direct investment (FDI) worth Rs 1.97 billion during the period between April 2013 and October 2013. The sector accounted for just 0.26 per cent of the total FDI inflow of Rs 749.72 billion into the country during the period under review.
Telecom being one of the top three sectors in terms of attracting FDI since April 2000, received the lowest FDI during April-October 2013. DIPP has stated that since August 2013 the Foreign Investment Promotion Board (FIPB) has approved only two FDI proposals in the sector.
Following the government?s move to increase FDI in the telecom sector from 74 per cent to 100 per cent, FIPB has allowed Singapore-based SingTel to increase its stake in the long-distance phone business in India. Besides SingTel deal, the FIPB also approved Vodafone Plc?s proposal to increase its equity holding to 100 per cent in its Indian subsidiary, Vodafone India for Rs 101.41 billion.
