Government mulls FDI norms for news sites

New Delhi: The Modi government is understood to be contemplating the establishment of norms for foreign investment to news websites in the country. At present, there are no rules or regulations to allow or monitor the foreign investment flowing into the digital news media sector. The move has been prompted with an eye on easing foreign investment to the digital news sector, which is considered to be the next major boom sector for the media and entertainment sector.

The move comes after opening up of crucial sectors like civil aviation, construction and single brand retail by the Modi Cabinet on Wednesday.

Sources stated that step comes after the Modi government received several proposals seeking permission for foreign investments to the digital media platforms.

Sources stated that the government consideration for a policy on the foreign investment to the sector came after several experts and industry stakeholders pointed out that digital media was being considered as the new growth area for the media and entertainment sector and could bring in much needed jobs to the market. They also pointed out that the current print and electronic media industry was unlikely to see the boom that these sectors had witnessed over the past several years, sources added.  

It is understood that, at present, companies seeking such investment apply through the Union information and broadcasting ministry or the communications ministry for relevant approvals of foreign investment. However, as both these ministries are not empowered to clear such matters, these are forwarded to the department of industrial policy and promotion, sources added.

Sources stated that under the present regulations, a recent application for foreign investment to a news website was cleared through this route. However, as a long term measure to bosst the sector, the government is now likely to seek the approval of Union council of ministers for establishment of norms to approve foreign investment to news websites.