FDI in Mobile Industry

• The Foreign Investment in India is regulated by  Foreign Exchange Management Act, 1999 (FEMA) read with Foreign Exchange Management (Transfer or Issue of a Security by a Person resident Outside India) Regulations, 2017.
• The policies and procedures relating to FDI in India are issued by:
  1. Ministry of Commerce and Industries-  which gives limits of FDI and terms and conditions, sectoral caps on FDI in a specific sector.
  2. Ministry of Finance- which gives policies regarding remittance
  3. Reserve Bank of India- frames regulations to prohibit, restrict or regulate transfer or issue of any security by a person resident outside India.
  4. Banks… they actually receive the FDI and regulate its flow.
• For manufacturing in telecom, mobile sector, the Govt. allows 100% FDI. That means a foreign company can start manufacturing in India with 100% ownership.
• For telecom operations-cellular/basic services also 100% FDI is allowed, but upto 74% by automatic route and after that by approval from Government.
• The Reserve Bank of India, in consultation with the Government of India, has revised the Regulations on foreign investment in India and has repealed and replaced the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000 (Notification No. FEMA 20) and Foreign Exchange Management (Investment in a Firm or Proprietary Concern in India) Regulations, 2000 (Notification No. FEMA 24) both dated May 3, 2000 with the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2017 dated November 7, 2017 (Notification No. FEMA 20(R)). 
• The consolidated order known as Master Direction on FDI is available at here
• The FDI details and sectoral caps is available at here