Huawei Technologies has sought withdrawal of its long-pending proposal to the FIPB. The move follows ZTE Telecom withdrawing its application from the FIPB and applying directly to the Reserve Bank of India (RBI). Huawei is also expected to approach the RBI for clearance of its $100 million investment proposal. As per the rules, 100 per cent FDI is permitted in telecom manufacturing under the automatic route. Meanwhile, both the Chinese vendors may have to pass stringent government security tests for every telecom product before it can be sold in India.
