FDI in telecom hiked to 100%

The government today allowed 100 percent foreign direct investment (FDI) in telecom sector; a key demand of the industry.there is raising of cap from 74 to 100 percent in basic and cellular services. Upto 49 percent remains under automatic route and 49-100 percent through FIPB route, commerce minister Anand Sharma said in a press conference.

In a major reforms push, the government today allowed 100 percent foreign direct investment in the telecom sector, meeting a key demand of the fund-starved industry.

"Basic and Cellular Services (fix phone and mobile services), existing has been 74 percent and up to 49 percent automatic route and 74 percent though FIPB route. Now there is raising of cap from 74 to 100 percent in basic and cellular services. Up to 49 percent remains under automatic route and 49-100 percent through FIPB route," Commerce and Industry Minister Anand Sharma said here.