The Telecom Commission, the highest decision-making body in the telecom ministry, has approved a proposal to hike foreign direct investment (FDI) limits in the sector to 100%. The country currently allows foreigners to hold a maximum 74% in local phone carriers, however, this move would mean that companies such as Vodafone Group Plc, Telenor ASA and Sistema will not need Indian partners to operate in the country.
Further, the commission will now move a detailed note to the Department of Industrial Policy and Promotion (DIPP), which will take it forward for inter-ministerial consultations before placing it before the cabinet. The Telecom Commission has reportedly allowed up to 49% FDI through the automatic route, with further investments subject to approval by the Foreign Investment Promotion Board.
This move comes as huge relief to the Telecom Industry, which was sitting on a debt of Rs 1, 85,720 crore in 2011-12, as this would ensure fresh funds flows in the sector and will enable foreign telcos to easily buy out their Indian partners with which they had to join hands to meet the FDI norms for running companies in the country.
Earlier a panel headed Finance Secretary Arvind Mayaram had proposed to allow more foreign investment in sectors like defence, telecom, retail and commodity exchanges to revive investments and attract long-term investment as the government strives to contain its widening current account deficit.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: