Government raised FDI in Telecom Sector to 100 percent

The Union Government of India on 16 July 2013 raised the FDI limit in Telecom Sector from 74 percent to 100 percent. Government also cleared that the FDI in the Insurance and Telecom sectors will be up to 49 per cent through automatic route.

The Union Government also mentioned that FDI the single brand retail would be up to 49 percent through automatic route and remaining investments would be directed through Foreign Investment Promotion Board (FIPB) route. FDI in asset reconstruction companies will be up to 49 per cent through automatic route. FDI in Credit Information Companies has been raised to 74 per cent from 49 per cent.

The Government also confirmed that the FDI in Defence Production will continue to be 26 percent. However, it will be directed through FIPB route for state of art technologies, and investment beyond that will go to Cabinet Committee on Security.

The decision was taken in a meet chaired by Prime Minister and attended by the Cabinet Ministers. The decisions were made to boost the Foreign Direct Investment in the country.

There was agreement on the following proposals

Sector	Cap	Route
Petroleum and Natural Gas and Refining	49percent	Automatic
Commodity Exchanges	49percent	Automatic
Power Exchanges	49percent	Automatic
Stock Exchanges, Depositories, Corporation	49percent	Automatic
Asset Reconstruction companies	Upto 49percent 49percent to 100percent	Automatic FIPB
Credit Information companies	74percent	Automatic
Single Brand Retail trading	Upto 49percent 49percent to 100percent	Automatic FIPB
Basic and Cellular Services, etc.	Upto 49percent 49percent to 100percent	Automatic  FIPB
Courier Services	100percent	Automatic
Defence Production		CCS may approve proposals on case to case basis beyond 26percent which are likely to result in access to modern and state of the art technology in the country.