The Indian government is considering allowing foreign investors to hold up to 100% of local telcos, in an effort to make the industry more attractive, according to the Economic Times citing local officials.
Currently, foreign direct investments (FDI) in…
The Indian government is considering allowing foreign investors to hold up to 100% of local telcos, in an effort to make the industry more attractive, according to the Economic Times citing local officials.
Currently, foreign direct investments (FDI) in telecoms companies are capped at 74%. But the rising cost of infrastructure, the poor response to spectrum auctions and the operators’ mounting debts have urged officials to reconsider FDI limits, explained the local newspaper.
The last time the Indian government raised the FDI ceiling was in May 2007, when it was increased from 49% to 74%.
Other sensitive sectors, from a national security point of view, might be allowed to welcome more foreign investments. These include defence production, where the limit could be increased from 26% to 49%, wrote the Economic Times.
