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FDI Equity Inflows in Telecommunications Sector from 2000-01 to 2016-17

January 10, 2018

Foreign direct investment (FDI) is an investment made by an organization/entity in one country in an industrial/business activity in another country. FDI can take place in the form of establishing new business operations from scratch or acquiring existing business assets in the other country. FDI includes mergers and acquisitions, building new facilities, expansion of existing production capacity, etc. FDI usually involves control/participation in management, joint-venture, management expertise and technology transfer. It excludes investment through purchase of securities or portfolio foreign investment, a passive investment in the securities of another country e.g. shares and bonds.

The amount of FDI in Telecommunication Sector was $ 177.69 million in 2000-01. The share of FDI in Telecommunication Sector in total FDI in India was 7.47% in 2000-01. The amount of FDI in Telecommunication Sector was $ 873.23 million in 2001-02. It increased by $ 695.54 million as compared to 2000-01. In percentage terms, the increase was 391.43%. The share of FDI in Telecommunication Sector in total FDI in India was 21.68% in 2001-02.

The amount of FDI in Telecommunication Sector was $ 617.98 million in 2005-06. It increased by $ 499.65 million as compared to 2004-05. In percentage terms, the increase was 422.25%. The share of FDI in Telecommunication Sector in total FDI in India was 11.16% in 2005-06. The amount of FDI in Telecommunication Sector was $ 1664.5 million in 2010-11. It decreased by $ 874.76 million as compared to 2009-10. In percentage terms, the decrease was -34.45%. The share of FDI in Telecommunication Sector in total FDI in India was 7.78% in 2010-11.

There was a lot of volatility in the annual FDI inflows in Telecommunication Sector during the period 2000-01 to 2016-17. We have seen a growth of 320.09% in FDI inflows in Telecommunication Sector during 2016-17 over 2015-16. We have seen a decline of -54.25% in FDI inflow in Telecommunication Sector during 2015-16 over 2014-15. We have seen a growth of 121.50% in FDI inflows in Telecommunication Sector from $ 1306.95 million during 2013-14 to $ 2894.96 million during 2014-15.

During the period under consideration, the maximum annual growth in FDI in Telecommunication Sector of $ 4239.29 million was recorded in the year 2016-17. The maximum annual growth in percentage terms in FDI in Telecommunication Sector of 422.25% was recorded in the year 2005-06. The maximum share of FDI in Telecommunication Sector in total FDI in India of 21.68% was recorded in the year 2001-02.

Note: Amount in US$ million.

Dataset URL: https://data.gov.in/catalog/foreign-direct-investment-fdi-equity-inflows

Resource Title: Financial Year wise FDI Equity Inflows from 2000-01 to 2016-17

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Source: Ministry of Commerce and Industry, Department of Industrial Policy and Promotion
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