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Telecommunications giant Vodafone has acquired a 67 per cent stake in Mumbai-based mobile telephone operator Hutchinson Essar.

The operator has acquired companies that control a 67 per cent interest in the Indian firm from Hutchison Telecom for $11.1 billion (£5.7 billion). Hutch Essar has about 18.4 million customers in the fast-growing south Asian market.

Sir John Bond, chairman of Vodafone, said: "India is destined to become one of the largest and most important mobile markets in the world and this acquisition will enable our shareholders to benefit from our increased investment in this market.

"We also look forward to playing our part in delivering the significant economic and social benefits which mobile telephony can bring to the people of India," he added.

Vodafone today also sold back its 5.6 per cent share in rival Indian telecommunications company Bharti Airtel for $1.5 billion (£700 million).

However, the massive investment of Vodafone in Indian's mobile telephone market has been welcomed by Bharti Airtel, one of the country's largest operators with 33.7 million customers.

Sunil Bharti Mittal, chairman and managing director of Bharti Airtel, said: "We are pleased to welcome Vodafone and congratulate them on their Hutch acquisition. Today, the Indian telecom sector is one of the most sought after in the world and the bid is a strong endorsement of the government policy to promote the telecom sector."