ABSTRACT

This paper examines the impact of the Adjusted Gross Revenue (AGR) dispute on regulatory stability in India’s telecom sector and further evaluates the effectiveness of post-AGR policy reforms in restoring foreign investor confidence. Using the doctrinal research methodology, this paper seeks to analyze key legal cases, policy reforms, and financial data to assess the implications of the AGR dispute on regulatory practices and FDI trends in the telecom sector. The findings suggest that the dispute affected the investor confidence due to perceived regulatory risks, however, subsequent government reforms like redefining AGR, offering payment moratoriums, and allowing 100% FDI via the automatic route had indicated a shift toward a more investor-friendly framework. The paper concludes with recommendations for further policy measures in order to enhance regulatory stability and sustain foreign investment in India’s telecom infrastructure.