An Empirical Study on Selected Determinants of FDI in Telecom Sector of India

In India, today the Major percentage of GDP is from Service Sector in which Telecom Sector is amongst the top most contributors. FDI always remained center of attraction for the researchers from the point of view of its importance in economy. FDI policy is reviewed recurrently for making it capable of attracting more investment. Government adopted liberal policy under which 100% FDI is allowed through automatic route in many sectors, however in few cases Government intervention is remained intact. In spite of being liberal on FDI front, the Telecom Sector is unable to meet the desired targets of attracting FDI; this could be because of many factors which are deterrent to FDI in our economy. The present study will try to examine few such factors like corruption, Number of Mobile and landline subscribers to analyze their impact on FDI in Telecom Sector. Few results are meeting the expectations but other contrasting.