India’s Prime Minister Narendra Modi-led NDA government has increased the ceiling on Foreign Direct Investment (FDI) in the media sector as part of its continuing reform exercise to attract more investment into the country and further globalisation of the sector.
The government has increased the FDI limit to 100 per cent in the broadcast distribution platforms such as Direct to Home (DTH), teleports, mobile TV, Headend-in-the Sky Broadcasting Service (HITS) has been opened up and 100 per cent FDI through automatic route can now be invested. Previously this limit was 49 per cent.
According to DTH service provider Videocon d2h, this 100 per cent FDI is a further boost to the sector and with impending digitisation of the analogue cable markets, describing the move as “a welcome step” which will bring in more investors to the sector who will see a huge opportunity waiting to be tapped.
“We welcome this move of government. This will boost the overall investments in the sector in the long run and will drive participation of global players in the fast growing Indian media sector,” added Anil Khera, Chief Executive Officer, Videocon d2h.