Telecom Commission Approves 100% FDI in Telecom Sector

Inter-ministerial body Telecom Commission today approved hiking foreign direct investment (FDI) limit in the sector from 74 % to 100 %

The commission has approved raising FDI limit to 100 per cent, 49 per cent investment can be made through automatic route but Foreign Investment Permission Board (FIPB) approval is required to increase the level, a senior government official said

The decision will come in force after the Cabinet approval for the same.

The official said that Department of Telecom (DoT) will send a detailed note to the Department of Industrial Policy and Promotion (DIPP) which will forward this proposal for Cabinet approval.
   
At present, FDI limit in the sector is 74 % where 49% is done through automatic route and rest requires nod from FIPB

The cumulative FDI between 2000 and 2012 was Rs.57,079 crore or nearly $10 billion (see Chart)

Note

• India has allowed 100 % FDI in telecom equipment manufacturing since the early 1990s. 
• The National Telecom Policy 1994 allowed up to 49 % FDI in telecom services
• Former Telecom Minister Dayanidhi Maran increased the FDI limit to 74 % in 2005