The government expects the telecommunication services sector to contribute at least $2 billion worth of foreign direct investment every year for the next three-four years, raising hopes of a $10 billion per annum FDI inflow into the country during the period.
Among the other sectors which are expected to be hot destinations for FDI are automobile, biotechnology, pharmaceuticals and real estate, a top official in the government told Business Standard. He also said that the FDI figures will show a quantum jump when the privatisation process gains momentum.
The optimism from the telecommunication sector comes from the fact that in the past few months, telecom companies have demonstrated their willingness to venture new areas, thanks to the liberal policies of the government like inviting bids for the fourth cellular operator, opening up the national long distance business and announcements with regard to the opening up of the international long distance telephony.
The Bharti group has in the past one year brought in as much as $500 million as FDI into the country. The company is now set to tap the domestic market with an initial public offer which is likely to raise as much as Rs 2,000 crore.
