STATESMAN NEWS SERVICE
New Delhi, 2 August
Increasing foreign direct investment (FDI) limits is a significant move towards reviving the economy by improving on the current account deficit (CAD) and encouraging fresh investments in the country, industry body Ficci said here today.
In a Press statement, Ficci said it welcomes the Cabinet’s decision on enhancement of FDI limit in the Indian telecom sector from 74 per cent to 100 per cent.
This is a significant milestone in the liberalisation process in the telecom sector that began in the mid-90s, the business chamber said.
This pro-industry and pro-consumer move reflects the government’s commitment towards improving the current investment sentiments in the sector, Ficci said.
The move will help the telecom industry to recover from its debt issues, thereby improving the financial health of the industry, it added.
The industry lobby said that it is noteworthy that the government has continued to engage with potential investors in the retail sector with a view to calibrate the policy to encourage FDI in multi-brand product retailing.
Ficci said that it supports a policy that allows micro, small and medium enterprises to grow and become part of the global value chain which is possible in an ecosystem that supports greater outsourcing from the MSMEs.