FDI commitment to IT, telecom

With companies like Intel, Microsoft, Cisco, Nokia and Ericsson outlining ambitious expansion plans for India, the FDI commitment in the telecom and IT sector combined have touched Rs. 80,000 crore over the last 20 months.

India has become preferred destination for investment in IT and Telecom sector. Most of the FDI investment is taking place in this two sector.

The companies investing are the leader in their respective field. This is a good sign for India as it is able to attract these world class companies to invest in.

The investment is taking place not only in the expansion of their existing plant but also in the R&D activity and investment in Indian companies. So these companies are in going to improve these sectors of India.

The investment is R&D is a good sign for India. This means that the new product developed by these companies will have contribution from India. India is becoming the favorite destination for any activity related to IT. The reason is not only the work at a lower price but also the quality work is being done in India.

But India has to make stringent rule in its emerging sector. One of the major FDI is BPO and the data theft in BPO sector is increasing. The government has to maintain the credibility of the Indian firms as well as the country. So stringent rules are needed to make the investment a continuous one.