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.
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 fiscal.
Meanwhile, the recent FDI order on increasing foreign holding of up to 74 per cent in private security agencies has created a piquant situation as the Act governing the sector stipulates that the majority stake in such companies should be held by an Indian.
According to a senior government official, the DIPP notification on the hike can attain validity only if the Private Secu-rity Agencies (Regulat-ion) Act, 2005, is amended to suitably to incorporate the increase in FDI.
Last month, DIPP permitted FDI of up to 49 per cent under the automatic route and up to 74 per cent through the approval route. Notif-ication to this effect was issued by the department on June 24.
