Finance Minister Nirmala Sitharaman has proposed to further relax norms and open up foreign direct investment (FDI) in Media and AVGC (Animation, Visual effects, Gaming and Comics) sector in her maiden budget speech on Friday.
“I propose to further consolidate, the gains in order to make India more attractive FDI destination. The government will examine suggestions of further opening up of FDI in media, AVGC (Animation, Visual effects, Gaming and Comics) in consultation with stakeholders,” she said.
Already India is one the most liberal media markets in the world in foreign direct investment (FDI) for global companies to engage in business.
Currently, the government allows 26% FDI in publishing of newspapers and periodicals involved with news and current affairs through the approval route and 49% FDI in news channels.
While no rules have been framed for FDI in news and current affairs in digital media in India, indications are that government may spell out norms for permitting 26% or 49% for Streaming of news & current affairs through digital media.
It is not clear on what’s to come in FDI in AVGC (Animation, Visual effects, Gaming and Comics sector. The AVGC sector already enjoys 100 per cent FDI, although no rules have been forumlated for this sector.
MEDIA & ENTERTAINMENT SECTOR: CURRENT FDI NORMS