The Government of India allowed 100 percent Foreign Direct Investment (FDI) in the telecom sector. The decision was taken at a meeting of senior Cabinet ministers with Prime Minister Manmohan Singh.
Though FDI in telecom services will be raised to 100 per cent, only up to 49 per cent could come via the automatic route. Beyond that, permission of FIPB will have to be sought.
Also decided at the meeting was that FDI cap for private insurers would be raised to 49 percent but that would need Parliament’s approval. The FDI limit for credit information firms was raised from 49 percent to 74 per cent.
Besides these, the ministers eased FDI procedures for seven other sectors. But they stopped a little short of accepting all recommendations of the Arvind Mayaram committee, including those to raise FDI cap for news & media (current affairs) to 49 per cent from 26 per cent.
After the meeting, Commerce Minister Anand Sharma said a Cabinet note on Tuesday’s recommendations would soon be prepared.