Telecom Industry of India: FDI Trends and Market Development

Foreign Direct Investment is considered as most important especially for the developing countries like India, as foreign investors tends to bring it with the capital, technology and the skills needed for Industrial development. Over the past decade, the Telecom sector of India has experienced rapid growth owing to regulatory liberalization, To attract more Foreign direct investment in, the government made an attempt to liberalize FDI policy in telecommunication sector. Now Govt. of India invites 100% FDI in telecom industry i.e. 49% through Automatic route and 51% through FIPB. The objective of research paper is to study the FDI trends in telecom industry. The paper also highlight the present scenario of telecom industry in India i.e. market size as well as recent developments in this sector. Secondary data is used for this study, which is taken from various sources such as research papers, articles, websites of DOT, GOI, other websites etc. The study concludes with that government has enabled easy market access to telecom equipment and a fair and proactive regulatory framework that has ensured availability of telecom services to consumer at affordable prices. The deregulation of Foreign Direct Investment (FDI) norms has made the sector one of the fastest growing and a top five employment opportunity generator in the country.