Indian Media Industry And Foreign Direct Investment Guidline.
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Indian Media industry and Foreign Direct Investment Guidline.

In 1990 Indian finance minister Dr. Manmohan Singh overtake Liberalization to empower Indian citizen’s living standard. Till 1980 Indian Economy operated by central govt. but lacking in foreign investment into Nation market, due to this national standard not level up. Ruling Congress National party under Late Rajeev Gandhi, he tried to boost FDI but failed to increase exports but import exceeded, that occur due to huge payment misbalance.

Cracking of Soviet Union made big problem because of over dependency on them. Here the problem of ethical liberalization create big gap into consumer demand supply cycle and economic development. At present we are in 12 ranks in world’s largest economy, and repute in 4th place in product purchasing capacity. World Bank declared that Indian economy is leveraging in 2010 with estimated 8 % grow up chances.

According to Indian Economy survey 54% of GDP comes from service sector, Industrial & agriculture sector contribute 29%, 17% respectively.

On the issue of Foreign direct Investment India merges as new marketing mogul. The foreign institutional investments (FII) amounts to around US$ 10 billion in FY 2008-09, while the rate of Foreign direct investments (FDI) has grown around 85.1% in 2009 to US$ 46.5 billion from US$ 25.1 billion (2008).

Now talk about Indian Media Industry, Indian Media & entertainment sector have immense opportunity to grow therefore Indian Govt. approved 100% FDI in film industry (subject to condition) 20% in Radio additional guideline by Ministry of Information & Broadcasting , 26% in news related print media same 26% for news channel .

The main plethora of fast changing media capital changed in June 2002 that the National Democratic alliance lifted the 50yers old ban from print media, it was a time when Indian govt. fixed only 26% FDI in news & current affairs and 74 % from non-news & current-affairs.

Due to corporate indulgence into media like Reliance entertainment & Sahara India Parivar lots of collaboration media merger acquisition takes place. Now the whole scenario is fully changed global investors are coming to India & revealed keen interest to taking part in Indian media Industry.

By the time UPA Govt said TRAI –Telecom Regulatory Authority of India proposed to increase FDI 26% to 49% & a raise in the ceiling of cable networks from the existing 49% to 74% and the FM radio from the existing 20% to 49% .Earlier this month Ministry of I&B announced that request of media houses by increase the FDI limit to 49 per cent in consultation with the Telecom Regulatory Authority of India is under concern.


Note;-

[Investment can be allowed through foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.

According to reserve bank of India, less media companies are here which is allowed to invest more than 40% FII Investment. Somewhere Indian govt. allow Overseas Corporate bodies who works for Indian nationalist resident outside of India can invest]

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