Review of Foreign Direct Investment Policy on Telecom Sector · Press Note No. 4 (2021 Series)
DPIIT press note Press Note No. 4 (2021 Series) · 06 Oct 2021
Official title
Press Note No. 4 (2021 Series) : Review of Foreign Direct Investment (FDI) Policy on Telecom Sector.
Official record
Open source pageSummary
Check the official recordWhat changed
The Government of India amends the Foreign Direct Investment policy for the telecom sector to allow 100 percent foreign investment under the automatic route. This change applies to all telecom services including Telecom Infrastructure Providers Category-I. Entities must continue to follow licensing and security conditions specified by the Department of Telecommunications. Foreign investment remains subject to the provisions of Para 3.1.1 of the FDI Policy regarding entities from countries sharing a land border with India. Investments that require prior government approval under these security provisions continue to follow the government route. This policy change takes immediate effect.
What you must do
- Observe licensing, security and other terms and conditions specified by the Department of Telecommunications
- Obtain prior government approval for investments subject to Para 3.1.1 of the FDI Policy
Key dates
Document text
Government of India
Ministry of Commerce & Industry
Department for Promotion of Industry and Internal Trade
FDI Policy Section
Press Note No. 4 (2021 Series)
Subject: Review of Foreign Direct Investment (FDI) Policy on Telecom Sector.
The Government of India has reviewed the extant FDI policy on Telecom sector and has made the following amendment under the Consolidated FDI Policy Circular of 2020, as amended from time to time (FDI Policy):
Para 5.2.14 of the FDI Policy is amended to be read as under:
5.2.14 TELECOM SERVICES
| Sector/Activity | % of Equity/ FDI Cap | Entry Route |
|---|---|---|
| 5.2.14.1 |
Telecom Services (including Telecom Infrastructure Providers Category-I)
All telecom services including Telecom Infrastructure Providers Category-I, viz. Basic, Cellular, United Access Services, Unified license (Access services), Unified License, National/International Long Distance, Commercial V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS), all types of ISP licenses, Voice Mail/Audiotex/UMS, Resale of IPLC, Mobile Number Portability services, Infrastructure Provider Category-I (providing dark fibre, right of way, duct space, tower), Other Service Providers and such other services as may be permitted by the Department of Telecommunications (DoT). | 100% | Automatic | | 5.2.14.2 Other Conditions:
The licensing, security and any other terms and conditions as specified by Department of Telecommunications from time to time, shall be observed by licensee/entities providing services as referred in Para 5.2.14.1 above, as well as investors. | | |
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It is clarified that notwithstanding the provisions of Para 5.2.14 of the FDI Policy as amended above, foreign investment in Telecom Services will be subject to the provisions of Para 3.1.1 of the FDI Policy [as amended vide Press Note 3 (2020 Series) dated 17.04.2020]. Accordingly, cases requiring prior Government approval under the provisions of Para 3.1.1 of the FDI Policy, will continue to be on the Government route.
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The above decision will take immediate effect.
(Manmeet Kaur Nanda)
Joint Secretary to the Government of India
DPIIT File No.: 5(4)/2021-FDI Policy, dated 06.10.2021
Copy forwarded to:
- Press Information Officer, Press Information Bureau- for giving wide publicity to the above Press Note.
- Joint Secretary(I&C), Department of Economic Affairs, North Block, New Delhi
- Reserve Bank of India, Foreign Exchange Department, Mumbai } For suitably incorporating the policy changes in Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, the relevant schedules thereof and FIRMS portal.
- NIC Section in the Department for Promotion of Industry and Internal Trade - for uploading the Press Note on DPIIT's website.
- Hindi Section, DPIIT- for providing Hindi version.
Source details
- Source
- Department for Promotion of Industry and Internal Trade
- Type
- press note
- Published by source
- 06 Oct 2021
- Document number
- Press Note No. 4 (2021 Series)
- Issuing division
- Department for Promotion of Industry and Internal Trade
- Effective date
- 06 Oct 2021
- Coverage area
- foreign-investment