FDI in digital media could mean large fund inflows: KPMG

29 Aug,2019

By A Correspondent

 

The Union Cabinet announced its policy for Foreign Direct Investment (FDI) in the digital media. Here’s goes the relevant part from a communique, titled ‘Digital Media’: The extant FDI policy provides for 49% FDI under approval route in Uplinking of ‘News & Current Affairs’ TV Channels. It has been decided to permit 26% FDI under government route for uploading/ streaming of News & Current Affairs through Digital Media, on the lines of print media.

 

Said Himanshu Parekh, Partner and Head, International Tax, KPMG in India on changes to FDI norms in digital media: “The M&E industry grew by 13.3% in FY19 (as compared to FY 18) on the back of colossal growth of 43.4% in digital media segment*. This is despite the fact that while the FDI policy currently permits 49% foreign investment in Uplinking of News & Current Affairs TV Channels and 26% in print media sector, both through government approval route, it was silent on FDI in the digital media segment. The government has today approved the proposal to allow 26% FDI for uploading/ streaming of News & Current Affairs through digital media. This is a welcome move and should lead to larger FDI inflows in India in the already burgeoning digital media sector.”

 

 

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