Earlier FDI was permitted in Broadcasting sector up to 49% through automatic approval route. However, under new FDI policy, such threshold has been increased upto 74%.
There are Three reasons for increased FDI in the sector :
As per FDI policy issued by Government of India, following are Threshold Limit, terms and conditions of FDi in Broadcasting and print Media sector:
As per updated Policy issued by Department of Industrial Policy and Promotion (DIPP) vide ‘Consolidated FDI Policy’, details of FDI policies on Broadcasting is given below:
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There are two types of Broadcasting Service :
a. BROADCASTING CARRIAGE SERVICES
Sector/Activity% of Equity/ FDI Cap Entry Route1. Teleports(setting up of up-linking HUBs/Teleports)
2. Direct to Home (DTH)
3. Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability)
4. Mobile TV
5. Headend-in-the Sky Broadcasting Service(HITS)100%AutomaticCable Networks(Other MSOs not under taking upgradation of networks towards digitalization and addressability and Local Cable Operators (LCOs))100%Automatic
Note : Government approval needed for fresh foreign investment beyond 49% in a company not seeking sectoral Ministry license, needs Government approval for ownership change or stake transfer to new foreign investor.
b. BROADCASTING CONTENT SERVICES
Sector/Activity% of Equity/ FDI Cap Entry Route Terrestrial Broadcasting FM (FM Radio), subject to such terms and conditions, as specified from time to time, by Ministry of Information &Broadcasting, for grant of permission for setting up of FM Radio stations49%GovernmentUp-linking of ‘News & Current Affairs’ TVChannels49%GovernmentUploading/Streaming of News & Current Affairs through Digital Media26% Government Up-linking of Non- ‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels100%Automatic.
Foreign direct investment (FDI) is significant for the media industry, involving ownership control by foreign entities. FDI includes mergers, acquisitions, new facilities, reinvesting profits, and intra-company loans. In a narrow sense, it means building new facilities, often with management participation, joint ventures, and technology transfer.
FDI greatly impacted Indian media with the Government approving 26% FDI in print and 49% in TV media in 1991. Cable TV in India emerged due to FDI, as before 1991, the Indian audience only had Doordarshan to watch, which is India’s national broadcaster.
FDI in India was permitted via two different routes: Automatic and government. Under automatic, no prior approval was needed, while government route required approval. India permitted 26% FDI in print publications, leading to increased funding in newsrooms and improved journalist salaries, boosting financial security.
As per the updated Policy issued by the Department of Industrial Policy and Promotion (DIPP) vide ‘Consolidated FDI Policy’, details of FDI policies on Print Media is given below:
Sector/Activity% of Equity/ FDI Cap Entry Route Publishing of newspaper and periodicals dealing with news and current affairs 26% Government Publication of Indian editions of foreign magazines dealing with news and current affairs 26% Government
Sector/Activity% of Equity/ FDI Cap Entry Route Publishing/printing of scientific and technical magazines/specialty journals/ periodicals, subject to compliance with the legal framework as applicable and guidelines issued in this regard from time to time by Ministry of Information andBroadcasting.100%GovernmentPublication of facsimile edition of foreign newspapers100%Government
Other Conditions