The Hindu Business Line : FDI cap hike in telecom `sends right signals'

THE decision to increase foreign direct investment (FDI) cap in telecom sector to 74 per cent sends the right signals to investors abroad and shows India's confidence in attracting foreign investment, according to the US Coordinator for International Communications and Information Policy, Mr David A. Gross.

"A number of American companies in the past have gone back from India. I am not sure if those companies would come back and invest, but it is important for companies to look at India at present. India is clearly sending the right signals. It is a good place to invest."

Mr Gross met senior government officials and members of the industry during his ongoing India visit. "We discussed measures for increased technical collaboration between the two nations. We held discussions on working closely on information security as we have common ground on that issue," he said. Measures to set up an early warning system to predict tsunami were also briefly discussed with Indian authorities.

On the fight between Global System for Mobile (GSM) based operators and Code Division Multiple Access (CDMA) operators over spectrum allocation, Mr Gross said that the Indian Government would do well to maintain a technology neutral stance and allocate spectrum wherever there was a deficiency.

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