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Foreign Direct Investment In The Indian Telecommunications Sector

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Executive Summary

This paper will examine the current status of Foreign Direct Investment (FDI) in the Indian telecommunications sector and the issues facing foreign companies seeking to invest in the Indian telecommunications sector. The paper concludes with a brief econometric examination of the factors influencing the level of FDI in the Indian telecommunications sector. In the early 1990s India began to open up an economy that was previously closed to Foreign Direct Investment (FDI). The liberalization in India included the gradual granting of authority for foreign direct investment in specific sectors of the economy.

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