FDI in telecom sector jumped five times in three years: Manoj Sinha

FDI would be the key to unleash the full potential of upcoming technologies like M2M, machine learning, artificial intelligence and internet of things, he says

Foreign direct investment (FDI) in the telecom sector has jumped nearly five times in the last three years – from $1.3 billion in 2015-16 to $6.2 billion in 2017-18, Communications Minister Manoj Sinha said today.

Although the Minister did not share specific details, he said FDI would be the key to unleash the full potential of upcoming technologies like M2M, machine learning, artificial intelligence and internet of things.

“India lost its chance to get full advantage of the first industrial revolution, but we cannot afford to miss the bus now. India must not only be a pioneer in rolling out these technologies but also in developing them,”Sinha said.

The Minister said telecom sector in India has witnessed some upheaval in last 2-3 years as there were many mergers and acquisitions and a couple of unfortunate insolvency proceedings. “However, consolidation in the sector will strengthen it. The worst is behind us. Indian telecom industry is now poised for deeper penetration of data services and expansions associated with it,” he added.

Sinha said the Indian economy is also back on the growth trajectory and it is the most opportune moment for the investors across the world to invest in India. “The Government of India will be happy to welcome and facilitate their Investments in India,” he said.

To further strengthen the telecom sector, the government has come out with the draft National Digital Communications Policy which aims to attract investment of $100 billion in the digital communications sector by 2022. Sources said the policy will be taken up by Cabinet tomorrow for approval. India has also announced plans to launch commercial 5G networks by 2020 which will provide another big opportunity for investing in the newer emerging technologies like 5G, AI, IoT, Data analytics etc, the minister added.

Telecom Secretary Aruna Sundararajan said the sector has been a poster of the Indian economy in the past and once of the sector stabilised from the current financial stress situation, it will regain the same status.

“If we put our act together, we can attract $100 billion FDI and enhance share of telecom sector in GDP from 6.35 per cent to 8 per cent,” the secretary said.

DoT Special Secretary N Sivasailam also said that if the telecom companies in the country want to grow they need to look at investing in overseas markets as well.

“We have players from other markets present in India but we don't have presence there. Our investments abroad will leverage debt. That is how wealth is created. It is time to look into it,” he added.