New Delhi: The India government has permitted 100% FDI under automatic route in the telecom services sector, news agency PTI reported. The Department for Promotion of Industry and Internal Trade (DPIIT) said that foreign investment in telecom services will be subject to the condition of Press Note 3 of 2020.
DPIIT said that a “non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route.”
It further states, “a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.”
Cases which require prior government approval under the provisions of Press Note 3 will continue to be in place, the DPIIT said.
The government is planning to amend FDI rules so that investors keen on picking up the stake in Life Insurance Corporation’s (LIC) IPO can do so without government’s approval under the so-called automatic route, people familiar with the developments told news agency Bloomberg.