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. The above reform comes a year after the Union finance ministry notified changes in the FDI rules in April 2020, which made prior approval of the government mandates for foreign investments from countries that share a border with India, including Pakistan, China, Bangladesh and Nepal among others. The Centre has allowed FDI through automatic routes in a majority of the sectors. However, in sectors such as defence, media, pharmaceuticals and insurance, government approval is needed for foreign investors.
100% FDI in telecom sector via automatic route allowed: Union minister
Jagran Josh