Union Minister Ravi Shankar Prasad on Tuesday said that India is the second largest telecommunications market and is on the cusp of transformational change which will require additional FDI in the sector. Addressing a seminar on INVEST DIGICOMM 2019 in New Delhi, he said that the recent decision on reduction of the corporate tax has made India a more attractive destination for FDI and it should aim for the largest FDI share in the world.
Prasad said given the recent announcements on tax relief for manufacturing, India has the same tax regime as Vietnam and Thailand.
The Minister said FDI has seen a jump over the last few years and grossed USD 64 billion in FY19. Telecom sector attracted FDI worth USD 2.67 billion, and in electronics, computer software and hardware of USD 6.4 billion.
Referring to the Prime Minister’s vision of Digital India, the Minister said emerging technologies like Artificial Intelligence, Machine Learning and IoT will play a crucial role in the Indian ICT sector and will contribute over 1 trillion-dollar to the overall planned target of 5 trillion—dollar economy by 2024. Prasad said that it is the most opportune time for the investors across the world to be part of the growth story of Indian Telecom and Government of India will be happy to welcome and facilitate FDI in this sector.
Speaking at the inaugural session, Anshu Prakash, Chairman, Digital Communication Commission (DCC) and Secretary, Department of Telecommunications emphasized the need for continuous and sustained investments in the sector.
The Thematic address of the event was given by P. K. Sinha, Member Finance, DCC, Department of Telecommunications and ex-officio Secretary to GOI who threw light on the background of FDI in Indian telecom sector. He assured all present that more such interactions with relevant stakeholders will be organized in the near future.