Indian Foreign Investment Promotion Board has granted approval to Vodafone's $1.64bn foreign direct investment (FDI) proposal to take full ownership of its local unit.
The investments are expected to push the country's growth, while the company expects to benefit form the nation's growing middle class expenditure on phone services.
The proposal from the British multinational telecommunications provider marks the first instance of a foreign telecom company raising its stake to 100% (from 74%) after the Cabinet allowed such a move in August 2013.
Vodafone Group Services media head, Ben Padovan, said: "We are pleased to have obtained FIPB approval to increase our stake in Vodafone India."
The telecommunications company had announced its acquisition plans in October 2013 and has been waiting for the government approval.
Vodafone currently owns 64% share of its Indian division that is also claimed to be the country's second-largest telecom operator based on the number of users.