Commerce minister favours 100% FDI in telecom sector

 

Union commerce and industry minister on Sunday favoured 100 percent (FDI) in the telecom sector and also foreign capital in defence sector.

 

Sharma said he would soon move the cabinet for further liberalisation in other sectors.

 

"I am strongly in favour of raising the cap in telecom sector. I have discussed this with the telecom minister and finance minister and once we have the proposal, we will move the cabinet for raising the cap to 100 %, and also for FDI in defence," said Sharma.

 

The minister wants global majors in defence sector to partner with both the state-run companies and the private sector.

 

Sharma said that he would meet defence minister A. K. Antony on increasing the foreign direct investment (FDI) cap in the defence sector.

 

"Defence minister and me will definitely meet. I have spoken to him and I have written to him and he has written back to me, suggesting that we will discuss this matter in the meeting. So lets us wait for that," he added.

 

Only 26 percent FDI is permitted in the defence sector while foreign investment in telecom sector is fixed at 74%.