FDI in telecom sector declines to $ 43 mn during April-Sept 2012

FDI in telecom sector declines to $ 43 mn
During April-September quarter of the current fiscal, Foreign Direct Investment (FDI) in the telecom sector has declined to USD 43 million, as against USD 1.9 billion foreign investment inflows seen during the same period a year ago, as per the Department of Industrial Policy and Promotion's data.

"The overall health of the telecommunications sector is very critical. Industry is shrinking in terms of margins and profitability and that is the main reason why foreign investors are shying away," GSM industry body COAI, Director General, Rajan S Mathews said.

In general as well, FDI in India has declined by around 33 per cent to USD 12.84 billion in the first half of the current financial year, from USD 19.13 billion in the year-ago period.

Decline in foreign investments inflows in India has pressurized the country's balance of payments (BoP), and could also impact the value of the rupee.

The sectors that witnessed significant FDI inflows during first half of the current fiscal include Services sector (USD 3.04 billion), Metallurgical (USD 685 million), Construction (USD 644 million) and Automobile (USD 635 million).

For the April-September period, the country has received maximum FDI of USD 6.25 billion from Mauritius; USD 1.32 billion from Japan; USD 1.12 billion from Singapore; USD 968 million from the Netherlands; and USD 592 million from the UK.

Read more about: fdi, telecom
Story first published: Monday, December 10, 2012, 14:30 [IST]
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