New Delhi : The current cap on foreign direct investment in the media and entertainment segments should be relaxed, industry lobby Assiociated Chambers of Commerce and Industry of India (Assocham) and advisory firm Pricewaterhousecoopers (PWC) have suggested.
“The government should hike FDI ceiling in FM radio from existing 20 percent to 49 percent and DTH services from 49 percent to 74 percent,” said an Assocham statement.
The call for relaxing the ceiling on FDI inflow into the media and entertainment segments came on the sidelines of a conference on tax and regulatory developments in entertainment and media industry, which was jointly organised by the Assocham and PWC.
“There is a strong case for review of FDI policy (for the media sector) to bring consistency in the policy and to provide a level playing field for competing technologies,” the Assocham said.
According to both the institutions, the current FDI policy for both the sectors creates confusion and discourages foreign investors from investing in India’s media and entertainment segment.
“This issue has gained importance on account of increasing convergence in broadcasting and telecommunication technologies and the impact of this convergence on competition in the market,” the statement added.
In addition, the two institutions have also proposed that the FDI limit in news and current affairs TV channels be raised to 49 percent from the current 26 percent.