FDI in telecom surged five times in past 3 yrs: Sinha

Inaugurating a seminar on ‘FDI in Telecom Sector: The Way Ahead’ here, Union Communications Minister Manoj Sinha said India needs massive investment in developing newer technologies which are accessible and affordable to the people and at the same time creates productive employment. 

For India to use its demographic dividend it is absolutely necessary to create semiskilled jobs in short run, and the telecom sector will play an important role in creating those employment opportunities, he added.

Sinha said, “As we move from telecom India to digital India, it is pertinent to mention that the draft National Digital Communications Policy, 2018 aims to attract investment of about Rs 6.5 lakh crore in the Digital Communications Sector. India has also announced plans to launch commercial 5G networks by the year 2020 and this provides a big opportunity for investing in the newer emerging technologies like 5G, AI, IoT and Data analytics.”

The Minister added the telecom sector in India has witnessed some upheaval in last 23 years. There were many mergers and acquisitions and a couple of unfortunate insolvency proceedings. However, consolidation in the sector will strengthen it as the worst is behind them. 

“Indian economy is back on the growth trajectory and the second quarter of 2018, GDP showed a promising growth at 8.2 per cent, and India is poised to become third largest economy in the world over the next two decades. Therefore, the Investors/Telecom operators across the world are invited to be part of the growth story of India Telecom through Foreign Direct Investments,” he added.

Telecom secretary Aruna Sundararajan emphasised the fact the foreign investment is necessary not only to supplement domestic capital but also to secure scientific, technical and industrial knowledge. She also pointed out that telecom sector has always been one of the core sectors attracting highest FDI inflows and this overall this trend has been positive for the past two decades.

The Union Cabinet is likely to take up a new telecom policy  National Digital Communications Policy 2018  on Wednesday, a source said. The new policy aimed at attracting $100 billion investment was approved by the Telecom Commission in July, after the government had released the draft policy in May. It focuses on provisioning of broadband for all, creating four million additional jobs and enhancing the contribution of the sector to 8 per cent of India’s GDP, from around 6 per cent in 2017. It also plans to propel India to the top 50 nations in the ICT Development Index of the International Telecommunication Union from 134 in 2017, enhancing the country’s contribution to global value chains and ensuring digital sovereignty.