Govt to clarify on applicability of FDI policy on digital media: Sources

The government is likely to come out with a clarification on applicability of the foreign direct investment policy on the digital media sector, official sources said.

The present FDI policy is silent on the fast-growing digital media segment.

In the print media sector, 26 per cent FDI is allowed through government approval route. Similarly, 49 per cent FDI is permitted in broadcasting content services through government approval route.

But 100 per cent is allowed for up-linking of non-news and current affairs' TV channels, and down-linking of TV channels through automatic approval route.

"In the FDI policy, digital media does not find a place. As the sector is growing fast, we are looking at it will come under FDI cap or not," a source said.

The proposal is worked out by the commerce and industry ministry, sources said.

On in the proposal, Deloitte Partner Jehil Thakkar said that this is a great move by the government as it would help media companies to raise additional capital for their digital media segment.

"The government should clarify about the FDI cap in the sector and whether that FDI will be coming through automatic route or not, he said.

Thakkar added that at present a significant part of the growth in the media sector is coming from the digital area. "Additional capital is needed to keep this growth going and FDI would be the most welcoming thing in this."