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 / 14:59, May 20, 2015
GPIL reported 13.5% yoy decline in operating profit as the impact of higher volumes was offset by lower product prices