Vodafone Group Plc has indicated that it will invest more than $2 billion in India following a government decision to allow foreign companies to fully own local carriers, telecommunications minister Kapil Sibal said on Tuesday.
“Vodafone is bringing in more than a couple of billion dollars,” Sibal told Reuters in an interview. “They will bring in investment and take advantage of the 100 per cent FDI that is now in place.” Vodafone intends to increase its stake in its Indian subsidiary following the removal of a 74 per cent cap on investment by foreign firms in telecoms, a source had said earlier this month.
Sibal gave no further details of Vodafone’s plans, and a company spokesman in London was not immediately available to comment. Sibal said the government wants consolidation in India’s 12-player telecom market.