Foreign Direct Investment in the Telecom Sector

Abstract

Given that most domestic operators are facing declining or stagnating revenues and high debt, FDI is being looked upon as a key contributor to meet the sector's investment targets. But the government needs to bring more clarity in its policies related to regulation, licencing and taxation. It is the policy of the Government of India to attract and promote productive FDI from non residents in activities which significantly contribute to industrialization and socio-economic development. FDI supplements the domestic capital and technology.