Govt notifies 100% FDI via automatic route in telecom sector
The move is expected to ease the approval process and reduce the time taken by a foreign company to invest in any Indian telecom service provider.
- Oct 6, 2021,
- Updated Oct 6, 2021 7:09 PM IST
The government on Wednesday notified 100 per cent foreign direct investment (FDI) via automatic route in the telecommunications sector.
Till now, only 49 per cent FDI was allowed through the automatic route. Any investment beyond this limit needed prior government approval.
The government's move comes days after the Cabinet Committee of Economic Affairs (CCEA) announced a comprehensive relief package for India’s telecom sector, including allowing 100 per cent FDI through automatic route. It is expected to ease the approval process and reduce the time taken by a foreign company to invest in any Indian telecom service provider.
Also Read: From moratorium on AGR dues to 100% FDI, govt approves bold reforms for telecom sector
The notification by the Department for Promotion of Industry and Internal Trade (DPIIT) covers all telecom service providers and is subject to the conditions of press note 3 of 2020.
Accordingly, all cases requiring prior government approval, under the provisions of press note 3, will continue to be in place.
As per press note 3, an entity of a country which shares a land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country can invest only after prior government approval.
Also Read: Cabinet approves PM MITRA scheme to set up 7 integrated textile parks, to cost Rs 4,445 cr
The government on Wednesday notified 100 per cent foreign direct investment (FDI) via automatic route in the telecommunications sector.
Till now, only 49 per cent FDI was allowed through the automatic route. Any investment beyond this limit needed prior government approval.
The government's move comes days after the Cabinet Committee of Economic Affairs (CCEA) announced a comprehensive relief package for India’s telecom sector, including allowing 100 per cent FDI through automatic route. It is expected to ease the approval process and reduce the time taken by a foreign company to invest in any Indian telecom service provider.
Also Read: From moratorium on AGR dues to 100% FDI, govt approves bold reforms for telecom sector
The notification by the Department for Promotion of Industry and Internal Trade (DPIIT) covers all telecom service providers and is subject to the conditions of press note 3 of 2020.
Accordingly, all cases requiring prior government approval, under the provisions of press note 3, will continue to be in place.
As per press note 3, an entity of a country which shares a land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country can invest only after prior government approval.
Also Read: Cabinet approves PM MITRA scheme to set up 7 integrated textile parks, to cost Rs 4,445 cr