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October 22, 2005
India raising foreign investment cap on telecom
India's federal cabinet announced plans to raise the foreign investment cap in the country's telecommunications sector, to 74% from 49% allowing for the first time non-domestic companies take majority stake.
As per the revised rules resident Indians would manage the operating company but 74% foreign investment can be made directly or indirectly in the operating company or through a holding company. The remaining 26% stake would be owned by resident Indian citizens or an Indian company.
India currently is one of the fastest expanding mobile phone markets experience 35% annual growth according to a recent report by Financial Times of UK.
According local telecom operators who have been lobbying for the raising of FDI cap initial investment in the sector will help further expand teledensity in the rural market.
Posted by admin at October 22, 2005 04:27 PM