The nexus between allied policies of GST and FDI with dependent telecom policies of licensing and universal service in India

Pankaj Mishra, Netra Pal Singh and Ayesha Farooq

International Journal of Networking and Virtual Organisations, 2024, vol. 30, issue 2, 152-173

Abstract: Telecom operators in India have frequently raised grievances on telecom and allied policies. This paper analyses if this is due to gaps in policy formulation, implementation or are an ex-post rent seeking. The effectiveness of stakeholder participation in foreign direct investment (FDI) and goods and services tax (GST) policy formulation was analysed using the conceptual framework from Leme and Harris-Wai (2015). The causal map of regulation from Coglianese (2012) was used to evaluate gaps in policy implementation. FDI policy formulation has limited stakeholder's participation, whereas GST adopted detailed stakeholder participation. No gap in policy implementation was found. However, contrary to literature FDI policy faced lesser ex-post issues compared to GST policy. Policy with discretionary provisions (FDI) experienced lesser ex-post grievances compared to policy with mandatory provisions (GST). Also, such an outcome was due to policymakers not addressing issues raised during the policy formulation and telecom operators adopting rent seeking behaviour.

Keywords: policy formulation; stakeholder participation; rent seeking; telecommunications; India. (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijnvor:v:30:y:2024:i:2:p:152-173

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