Business

Big Telecom Reform: 100% FDI Through Automatic Route Cleared By Cabinet

Big Telecom Reform: 100% FDI Through Automatic Route Cleared By Cabinet

The government has announced 100 per cent foreign direct investment (FDI) in the telecom sector through the automatic route as part of its comprehensive package for the telecom sector.  Till date, up to 49 per cent was allowed through the automatic route and anything thereafter had to necessarily go through the government route.

The 100 per cent automatic route will not apply to investors from countries such as China and Pakistan due to an existing policy in that regard. In April 2020, the government had imposed regulations on foreign direct investments originating from countries that share a land border with India to thwart any hostile takeover of domestic businesses.. The restrictions were also a part of the retaliatory measures unveiled by the government following the border skirmishes with China.