Lok Sabha Question No. 789 (UNSTARRED), answered on 2019-06-26
Subject: FDI in Telecom Sector
Ministry: COMMUNICATIONS
Asked by: Gajanan Chandrakant Kirtikar

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO. 789 TO BE ANSWERED ON 26 TH  JUNE, 2019

## FDI IN TELECOM SECTOR

## 789. SHRI GAJANAN KIRTIKAR:

|             | Will the Minister of COMMUNICATIONS be pleased to state:                                                                                                                                 |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) has     | whether Foreign Direct Investment (FDI) in the telecom sector during the year 2018-19 registered a decline from $6.27 billion to $2.67 billion;                                          |
| (b)         | if so, the details thereof and the reasons therefor;                                                                                                                                     |
| (c)         | whether a combination of regulatory uncertainty in the country and lack of conducive environment to invest is the main reason for decline in the FDI;                                    |
| (d)         | if so, the details thereof and the measures taken by the Government to attract FDI;                                                                                                      |
| (e)         | whether stressed financial condition is also responsible for decline in FDI; and                                                                                                         |
| (f)         | if so, the details thereof and measures taken by the Government to tackle the same?                                                                                                      |
|             | ANSWER                                                                                                                                                                                   |
|             | MINISTER OF COMMUNICATIONS, LAW&JUSTICE AND ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)                                                                            |
| (a) the     | The FDI equity inflow in the Financial Year 2017-18 was USD 6,211.84 million whereas FDI equity inflow in the Financial Year 2018-19 was USD 2,667.91 million.                           |
| (b) year    | The quantum and nature of FDI inflow in the country depends on many factors and accordingly no specific reasons may be attributed for increase or decrease of the FDI on year-to- basis. |
| (c) invest  | There has been neither a regulatory uncertainty nor the lack of conducive environment to in the Telecom Sector which may be cited as a reason for the year-to-year decline in FDI.       |
| (d)         | Not applicable in view of the (c) above.                                                                                                                                                 |
| (e) in FDI. | Stressed financial conditions, if any, cannot be held responsible for year-to-year decline                                                                                               |
| (f)         | Not applicable in view of the (e) above.                                                                                                                                                 |

*************