FDI Inflows to Information and broadcasting

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The FDI Inflows to Information and broadcasting sector has been the major growth driver. The FDI inflows have revolutionized the concepts of information and broadcasting sector.

Information and broadcasting-Overview

The FDI Inflows to Information and broadcasting are important for further development of the industry. The information and broadcasting industry mainly consists of all the electronic modes of communication such as, Internet, television, radio, and cinema and print media such as news dailies, magazines, periodicals, journals, etc.

With the reforms in the economic policies in the year 1991, this sector experienced a major boost. Foreign players entered the market, which was dominated by the Government owned agencies such as, Doordarshan and Akashvani. The new comers included major satellite televisions channels such as STAR, ZEE, SONY, HBO, etc.

The global media giants are eying the huge opportunities in the Indian Information and broadcasting sector. In the time period from 2004 to 2006, the FDI inflow to Indian Information and broadcasting was US$ 89.18 million.

FDI Inflows to Information and broadcasting-Initiatives of the Central Government

  • The Central Government has formulated several reforms for encouraging more and more foreign direct investments, which has been one of the major growth drivers for the Information and broadcasting industry.

  • The Central government has permitted 100% Foreign Direct Investment (FDI) for advertising and film industry by the means of the automatic route through the Reserve Bank of India (RBI).

  • The Central government allows 49 % of foreign investments in Direct to Home TV and Satellite cable TV.

  • The Government allows 26% FDI in news publications and 100 % FDI in non news publications.

  • FDI is also allowed at 20 % of the capital investments for the FM Radio sector.

  • The Central Government has permitted the construction of uplinking hubs for satellite transmission by private players in India.

  • The film production segment was given the status of industry.

Last Updated on 4/23/2011