Rajat Guha, New Delhi
The Economic Times (Mumbai edition)
The government is all set to allow 100% foreign direct investment (FDI) in global positioning system (GPS)-enabled devices. At present, there is 100% FDI in products under telecom equipment category. A notification would soon be issued about bringing GPS-enabled systems under the list of FDI-approved telecom equipment. Of late, the demand for GPS-based security systems has gathered steam following recent bomb blasts in various Indian cities.
The GPS is a space-based radio navigation system that provides reliable positioning, navigation and timing services to civilian users on a continuous worldwide basis. The technology is applied in the areas of roads and highways, space, aviation, rail, agriculture and public security. GPS tags, which are installed at various locations, help track real time movements.
According to sources, there was confusion among the policy makers over FDI in manufacture of GPS-enabled systems, even though there is 100% FDI in manufacture of telecom equipment in India. “Once approved, GPS would become part of telecom equipment in list of FDI-approved manufacturing activities,” a source said. The issue of FDI in GPS systems came up recently in a series of meetings held by the foreign investment promotion board (FIPB). Of late, many Indian companies have evinced interest to manufacture GPS devices in joint venture with foreign counterparts.
As a result, the FIPB has directed DIPP to look at whether GPS could be opened up for foreign investments. The DIPP is of the view that the field of GPS has not come up as there was no major demand or FDI proposal for the same in the past.
However, experts believe that due to string of recent terror activities including major bomb explosion in various Indian cities including Delhi, alarm bells have started ringing among big developers to equip their buildings with latest security systems. Moreover, increased demand for such systems that are usually GPS-enabled has fuelled interests among global security system providers to enter Indian market.
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