Television

Business chambers welcome hike in FDI in telecom

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NEW DELHI: The Federation of Indian Chambers of Commerce and Industry (FICCI) and the Indo - American Chamber of Commerce (IACC) has welcomed the decision of the government to increase the foreign direct investment in the telecom sector to 100 per cent.

According to a decision on FDI taken in a meeting chaired by Prime Minister Manmohan Singh, it had been decided to allow up to 49 per cent FDI by the automatic route for basic and cellular services etc., and from 49 per cent to 100 per cent through the Foreign Investments Promotion Board.

According to FICCI, the decision on enhancement of FDI limit in the Indian telecom sector from 74 per cent to 100 per cent is a positive sign and showcases government's commitment towards improving the current investment sentiment in the sector and aiding the telecom industry to recuperate from its debt issues. "Along with the National Telecom Policy 2012 and other necessary reforms, this pro-industry announcement will benefit the Indian economy and consumers in the long term," said FICCI president Naina Lal Kidwai.

Welcoming the proactive steps taken by the government to ease the foreign direct investment (FDI) norms in the country, primarily to stem the deteriorating current account deficit, Indo-American Chamber of Commerce (IACC) national president Shourya Mandal said, "These measures are inevitable against the backdrop of steep fall in the cross-country capital flows and subsequent heightened competition among the nations to attract the limited capital."

In a statement Mandal said, "Undoubtedly, we have to put in place a set of checks and balances to uphold our sovereignty and interest of the domestic industry, while attracting FDI. Our rules and regulations are framed taking cognizance of that factor. Unwarranted polemics on that count should be avoided to chase our goal of transforming ourselves into a developed country from an emerging economy."

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