Govt may hike FDI ceiling in telecom

The government may consider a proposal to raise the 74% foreign direct investment cap in the telecom sector, accordind to sources. The government last raised foreign direct investment (FDI) from 49% to 74% in March 2007 to increase investment in India's telecom sector. It took several years for the government to raise the FDI limit from 49% to 74%. In 2004, telecom minister Dayanidhi Maran had said India needed investments in infrastructure, pointing to nations that allowed 100% FDI in telecom. That year, finance minister P Chidambaram had proposed in the budget that the FDI limit in telecom should go up to 74%, but the Left parties opposed the move.