Govt mulling raising FDI cap in newspapers, periodicals

Current limit is 26%, may go up to 49%

The government is mulling to raise the foreign direct investment (FDI) limit in newspapers and periodicals to 49 per cent from 26 per cent at present.

Currently, the FDI policy permits 26 per cent foreign direct investment in the publishing of newspapers and periodicals dealing with news and current affairs through government approval route.

"Increasing the limit in these areas is an old suggestion of the Department of Economic Affairs. They have again asked the Department of Industrial Policy and Promotion (DIPP) to consider the proposal," sources said.

Recently, the government relaxed FDI norms in about eight sectors, including civil aviation, defence, private security agencies, pharmaceuticals and food processing industry.

The move is aimed at attracting more foreign funds.

This was the second major reform in the FDI space. The Centre in November last had significantly relaxed the foreign investment regime.

During 2015-16, FDI into the country has increased by 29 per cent to $40 billion from $30.93 billion in the previous financial year.