A total of Rs. 29,209.78 crores and Rs. 8,654.06 crores have been invested through Foreign Direct Investment (FDI) equity between 2009-12 in telecommunications and information & broadcasting sectors according to a report released by the government of India:
FDI in Telecommunications
Rs 386.55 crores was invested as FDI between April – December 2012 as compared to Rs. 9,011.53 crores between 2011-12 and Rs. 7,542.04 crores invested between 2010-11 according to the report. It is worth noting that in February 2012, the government wanted the 100% cap on FDI in telecom tower companies to be cut to 74% in par with other telecom services as per the Economic Times.
FDI in Information & Broadcasting
Rs 1,162.26 crores was invested as FDI in the information & broadcasting sector between April-December 2012 as compared to Rs. 3,264.09 between 2011-2012 and Rs. 1,887.17 between 2010-11.
FDI in Budget 2013-14
Finance Minister Mr.P.Chidambaram in his budget speech for budget 2013-14 said that FDI, Foreign Institutional Investment (FII) and External Commercial Borrowing (ECB) are the only means to finance India’s Current Account Deficit. In line with this statement, he also announced several measures in favour of furthering FDI and FII into India including simplified procedure for registration of foreign investors. The caps on FDI in each sector may be expected to be announced along with the proposed changes in the Foreign Policy that is likely to be released this month.