'Regulatory hurdles hampering India's economic growth'

UK-based telecom giant Vodafone has said the present 'regulatory challenges' in India are hampering economic development but the country offers good long-term investment opportunities for global firms.

The telecom major further said the current structure for airwaves auction in the country and piecemeal release of new spectrum are creating capital constraints for operators looking to provide quality services for subscribers.

“Spectrum auction structures combined with the piecemeal release of new spectrum, leaves less capital available for investment in bringing high quality services to more of the country, and this is exacerbated by other ongoing regulatory challenges,” Vodafone Group Chairman Gerard Kleisterlee said in the annual report for 2015.

The chairman said while India represents an excellent long-term

investment opportunity, the present regulatory challenges are hampering economic development.

The government raised a record Rs 1,09,874.91 crore (Rs 1,098.74 billion) in the country’s biggest and the fiercest auction of spectrum that concluded in March.