Addressing a press briefing, Union telecom minister Ashwini Vaishnaw said, “In the telecom sector, there was a 100% FDI but only 49% of it was in the automatic route. Today, the cabinet has decided that 100% FDI in telecom via the automatic route has been allowed.”
The Union Cabinet on Wednesday allowed 100% foreign direct investment (FDI) in the country’s telecom sector via the automatic route, adding all safeguards will apply. Till now, only 49% of FDI was allowed through the automatic route and anything beyond this had to necessarily go through the government route
Addressing a press briefing, Union telecom minister Ashwini Vaishnaw said, “In the telecom sector, there was a 100% FDI but only 49% of it was in the automatic route. Today, the cabinet has decided that 100% FDI in telecom via the automatic route has been allowed. All safeguards including press note 3 and others will be applicable.”
Along with the major change in the FDI, the Union cabinet also approved eight structural reforms and five process reforms for the telecom sector. Ashwini Vaishnaw said during Wednesday’s briefing that these reforms will change the framework of the entire sector and will deepen and broaden the industry.
“In the backdrop of the outstanding performance of the telecom sector in meeting Covid-19 challenges, with huge surge in data consumption, online education, work from home, interpersonal connect through social media, virtual meetings etc., the reform measures will further boost the proliferation and penetration of broadband and telecom connectivity,” an official statement read.
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