UK telecom giant Vodafone's entry in the Indian telecom market has elicited positive response from the industry, which said the development will encourage competition in the market and benefit consumers.

"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 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, 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".

The race for Hutch-Essar

India would be benefited by the experienced player's entry in the domestic market, since the telecom sector is set for high growth, he said.

The next growth target of 250 million subscriber-base is expected to come from tier III and tier IV towns of hinterland India, Rao added.

Assocham said innovation, coupled with right business model and affordable services, would be required for the semi-urban and rural Indian market, which is different from the European market.