According to a report released by the Department of Telecommunications (DoT), over the past 11 years, the telecom sector witnessed inflow of $12,400 million as foreign direct investment (FDI), as of September 2011.
As per current rules, 74 per cent FDI in companies providing telecom services is permitted. This excludes companies offering telecom infrastructure, services such as e-mail and voice mail and telecom equipment manufacturers. 100 per cent FDI is allowed in these segments.
The report further stated that the telecom space is the third largest sector registering substantial FDI inflow, after the services and computer software sectors. Between April 2000 and September 2011, actual FDI in the telecom sector stood at $ 12,456 in million. Also, by the end of financial year 2011, cumulative FDI in the country stood at $ 10,555 million, which is 18.27 per cent higher compared to $ 8,924 million in March 2010.
