INDIA: Prime Minister supports plan to raise India FDI ceiling in telecommunications to 100%

Wednesday July 10 2013

Further to the update of 11th April 2013, It has been reported that Prime Minister Manmohan Singh of India has backed the Ministry of Commerce and Industry’s plans to raise the India (FDI) foreign direct investment ceiling in telecoms to 100%.

If the Ministry’s plans are implemented, foreign investment will also be permitted in several sectors without prior government approval including the oil and gas sectors, courier and commodity services and power exchanges.

It is expected that changes to the law regarding foreign investment in telecommunications will set the tone for an increase in the limits applicable in the defence sector.

The Prime Minister is also reported to be in support of allowing 49% foreign investment in the insurance and pensions sectors that can tap into long-term savings and help fund infrastructure.

The plan to open up to greater foreign investment in India is aimed at regaining investor confidence and is hoped to strengthen the Rupee.

This information will be updated as soon as further details become available.