India to raise foreign investment limit in telecoms, resolves legal tangle.

(From Agence France Presse)

India's Telecommunications Minister Arun Shourie said he will ask the cabinet to raise the foreign investment limit in telecoms companies, paving the way for more growth in the burgeoning industry.

"We will recommend to the cabinet that the foreign investment limit be raised to 74 percent from 49 percent," Shourie told reporters Wednesday.

However, he said the ceiling will be raised only to allow in foreign institutional investors, while the limit for foreign companies taking a stake in a local operation will remain at 49 percent.

At the same time, the minister announced that local operators had accepted …