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Union Government mulls hike FDI in print media to 49%
The Union government is considering a proposal to increase the foreign direct investment (FDI) limit in the print media sector to 49 per cent.
Going by the past experience with regard to the FDI in Telecommunications and Civil Aviation sectors wherein the government had raised it from 49 to 100 per cent, it is certain that India will have foreign newspapers within a short span of time
New Delhi : The Union government is considering a proposal to increase the foreign direct investment (FDI) limit in the print media sector to 49 per cent. The Finance ministry has recommended raising the cap to 49% from 26%, bringing it on par with that on news television channels, two government officials said, asking not to be identified citing rules for speaking with the media. The Department of Industrial Policy and Promotion (DIPP) will decide on the matter, they added. Shares jumped.
Currently, the FDI policy permits 26 per cent foreign direct investment in the publishing of newspapers and periodicals dealing with news and current affairs through the government approval route. According to sources, the government has started a consultation process on the matter with an aim to attract more foreign funds to the sector.
Since taking power in 2014, Prime Minister Narendra Modi had raised investment limits in sectors including airlines, railways defence, private security agencies, pharmaceuticals and food processing industries. Asia’s third-largest economy is now one of the most open in the world, the government said last month. During 2015-16, FDI in the country increased by 29 per cent to $40 billion as against $30.93 billion in the previous fiscal.
Foreign investments are considered crucial for India, which needs around $1 trillion for overhauling its infrastructure sector such as ports, airports and highways to boost growth. Going by the past experience with regard to the FDI in Telecommunications and Civil Aviation sectors wherein the government had raised it from 49 to 100 per cent, it is certain that India will have foreign newspapers within a short span of time.
The government feels that foreign investments will help improve the country’s balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar. Jagran Prakashan Ltd, publishers of one of India’s most-read Hindi newspapers, jumped as high as 5.1% and the stock closed at a record Rs.182.70 after the news. HT Media Ltd, which publishes Hindustan Times and Mint, surged up to 6.3% and finally closed Rs.82.75 per share and D B Corp Ltd briefly pared losses and close at Rs.383.20 per share.
