India hails Vodafone entry in telecom market

"We congratulate Vodafone and welcome them to India. Vodafone's participation is a further endorsement of the exciting future growth potential, and the progressive policies, prevailing in the Indian telecom sector," Ambani said.

Interestingly, Ambani was one of the rival bidders in the Hutch-Essar buyout. "Reliance's bid was made in line with our publicly declared and consistent philosophy of sustainable value creation, and financial conservatism, in the face of truly challenging acquisition valuations," he said.

A consortium led by NRI business group Hindujas and Essar, were the other bidders in the fray for Hutch-Essar.

"The entry of Vodafone in India will increase competition, bring global practices and better services to the domestic market, which will benefit the end consumers," industry body Federation of Indian Chambers of Commerce and Industry (FICCI) said in a statement.

There are large business opportunities in India and more cross border corporate deals may take place in the future as well, it said.

Terming the Vodafone development as highly beneficial for the country and consumers, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) Telecom Committee chairman C.S. Rao said, "Vodafone is the largest global mobile service provider and has already mastered innovative services for subscribers be it in voice, data or video streaming."