The government has approved 100 per cent foreign direct investment (FDI) in the telecom sector. The cabinet has cleared the proposal to increase FDI cap in telecom from 74 per cent to 100 per cent.
Operators can seek up to 49 per cent investments through the automatic route and 49 to 100 per cent through the Foreign Investment Promotion Board (FIPB) route. The move is aimed to encourage investments in the telecom sector.
The move is expected to benefit foreign players who can now have complete ownership of the telecom businesses in India. Following the increase in FDI cap, industry analysts expect that the telecom industry could attract investment worth $ 10 billion in the medium to long term.
