Finance Ministry has asked the Foreign Investment Promotion Board (FIPB) to review the FDI policy in the telecom equipment manufacturing sector in a bid to tighten controls, according to reports.
Reports stated that at present, foreign equipment manufacturing companies are allowed to own 100% stake in their Indian subsidiaries.
The review follows a report released by a US Congressional panel that warned American companies against buying equipment from Huawei and ZTE.
While both Huawei and ZTE have dismissed these allegations, the Indian authorities want to do their own due diligence, says report.
India Infoline Research Team / 15:28, Mar 13, 2015
Markets are now reinforcing the perception of an early interest rate hike by US Federal Reserve, with consensus calling for the hike taking place in June, when compared with the prior expectations of a hike in September.