Government raises its cap to foreign investors

2 Feb 2005

The Indian union cabinet today approved a plan to raise the foreign investment cap in telecoms service providers to 74% from 49%. The move comes despite stiff opposition from some politicians, notably the communist parties. India, home to the world’s fastest growing mobile market, has set a target of having between 200 and 250 million phone connections by 2007. The telecoms ministry says this kind of expansion needs between USD23 billion and USD34 billion, and such resources are not available within the country.