The Indian telecom sector was liberalised under which year’s Telecom Policy?

Question

Question

This question was previously asked in

RRB NTPC Graduate Level CBT-I Official Paper (Held On: 05 Jun, 2025 Shift 1)

Answer 1

The correct answer is 1994.

Key Points

The Indian telecom sector was liberalized under the National Telecom Policy of 1994.
The policy introduced private sector participation in providing telecom services, which was earlier monopolized by the government.
It aimed to increase tele-density and improve the quality of services by allowing private players to operate in the telecom space.
The 1994 policy laid the groundwork for further liberalization and reforms, including the entry of private companies in the telecom sector.
This reform was a major step towards modernizing India's telecom infrastructure and ensuring widespread connectivity.

Additional Information

Telecom Regulatory Authority of India (TRAI): Established in 1997, TRAI is responsible for regulating telecom services, including tariffs and ensuring fair competition.
Subsequent Policies: The 1999 New Telecom Policy (NTP) further liberalized the sector and introduced revenue-sharing models instead of fixed license fees.
Telecom Revolution: The liberalization and reforms of the 1990s paved the way for the telecom revolution in India, with rapid growth in mobile phone penetration and internet services.
FDI in Telecom: The sector has also attracted significant foreign direct investment (FDI), with the government allowing up to 100% FDI in certain areas.
Impact: Today, India is one of the largest telecom markets globally, with billions of subscribers and a robust digital infrastructure.