Investments in telecom surged 4 times to $1.3b

Tags: News
The telecom sector attracted over 4-fold growth in foreign investments at $ 1.3 billion during the financial year 2013-14.

The sector had attracted investment worth $ 304 million in 2012-13 - about 84 per cent lower compared to 2011-12, the Economic Survey tabled in Parliament said today.

India's telecom sector has registered phenomenal growth during the past few years and has become the second largest telephone network in the world, next only to China, it added.

"A series of reform measures by the government, innovations in wireless technology and active participation by the private sector played an important role in the growth of the telecom sector in the country," the survey said.

The total telephone connections in the country increased to 933.02 million at the end of March 31, 2014 from 898.02 million a year ago. However, the total connections at the end of March 2012 were 951.35 million.

Foreign Direct Investment in telecom and computer sectors outshone other top key sectors such as financial/non-financial services, construction, hotels and tourism. The top 5 sectors cumulatively accounted for 45 per cent of total investments in the country last fiscal.

Overall, however, cumulative FDI inflows in these top 5 services sectors declined sharply by 37.6 per cent to $ 6.4 billion. FDI in computer software and hardware sector grew about 2.3 times to $ 1.12 billion in 2013-14, from $ 486 million in 2012-13.

"We are extremely pleased with increase in FDI. The clarity on policy and regulatory front and the expectation of new government clearly enhanced attractiveness of India as investment destination," telecom industry body COAI's Director General Rajan S Mathews said reacting on the survey data.

During 2013-14, government also obtained Rs 61,162 crore from auction of spectrum. The final price were 27.6 per cent more than the minimum price of telecom radiowaves fixed by government at that time.

The government last fiscal had introduced new telecom licencing regime, Unified Licences, under which companies interested in providing mobile or any wireless services are required to buy spectrum separately.

To enhance fixed line broadband connection in rural areas, the government entrusted state-run BSNL to provide broadband connection with minimum speed of 512 kbps in rural and remote areas under the Rural Wireline Broadband Scheme.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Tax offenders stashing black money abroad must be booked

    There can be little doubt that for the government to get at those salting away unaccounted and untaxed money in foreign banks is a long overdue exerci

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Riding the product startup wave

That the Indian youth is undergoing a massive change in ...

Zehra Naqvi

Rememberance and forgetting are crucial

Memories are so vital to our lives that they can ...

Dharmendra Khandal

Sandalwood may get extinct if not protected

When we talk of sandalwood, the most common usage that ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture