Union Minister of Commerce Piyush Goyal
The Union Cabinet has approved 26 per cent FDI (foreign direct investment) to digital media platforms to attract overseas players. This was previously only applicable to print media in the country.
“Even as foreign direct investment slows down across the globe, we are looking to liberalise norms in the country. We hope India can maintain its position as an attractive investment destination and grow in the coming months," Union Minister of Commerce Piyush Goyal said while addressing members of the media on Wednesday.
According to Mint, the move essentially means video streaming services like VOOT or ZEE5 that are run by broadcast networks like Zee Entertainment Enterprises Ltd or Viacom18 Media Pvt Ltd may now be listed as separate companies and raise their own investment.
The present FDI policy was 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 is permitted in broadcasting content services through government approval route.
The government on Wednesday relaxed conditions for single-brand retailers having foreign direct investment (FDI) for complying with the mandatory 30 per cent local sourcing regulations by allowing them to adjust all of their purchases to meet this norm.
According to the decision, such entities can now first operate through e-commerce and then open brick-and-mortar stores.
The current policy requires that SBRT (single-brand retail trading) entities have to operate through brick-and-mortar stores before starting retail trading of that brand through e-commerce. This creates an artificial restriction and is out of sync with current market practices.