Centre to approve 100 per cent FDI in telecom sector

The Telecom Commission- India's highest decision making body on telecom affairs, has on Tuesday, approaved 100 per cent foreign direct investment (FDI) in the telecom industry. The decision is likely to be sanctioned by Cabinet. Currently, 74 per cent FDI is allowed in the telecom sector.

The commission's nod comes in wake of Commerce Minister Ananad Sharma and Mayaram Panel favoring 100 per cent FDI in the telecom industry. The new FDI norm will allow 51 per cent FDI through the Foreign Investment Promotion Board (FIBP) approval, while 49 per cent of it will come through automatic route.

By way of allowing absolute FDI in telecom sector, the government aims to contain fiscal deficit. This would also allow telcos to raise money from overseas partners as well as facilitate foreign operators to inject more capital into India's robust telecom sector.