FDI equity inflow in the Indian telecom industry fell by 99.8 per cent YoY in H1FY21, says CARE ratings

According to a recent study by CARE Ratings, foreign direct investment (FDI) equity inflow in the Indian telecommunications industry plunged sharply from Rs 148.99 billion during April-September 2019 to Rs 500 million during April-September 2020, recording a year on year fall of around 99.8 per cent.

The report noted that the FDI equity inflow averaged at Rs 255.52 billion during the past four years from H1FY17 to H1FY20.

At present, FDI up to 100 per cent is allowed in telecom services sector. Of this, 49 per cent is under automatic route and beyond 49 per cent can be injected through government route subject to compliance of licensing and security conditions.