FDI in print media promises readers more variety

By Gautam Khaitan,OP Khaitan & Co
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The Indian press is undergoing continued liberalization following the government’s decision in 2002 to allow foreign direct investment (FDI) in print media. The decision to permit 26% FDI came with several conditions aimed at preventing national interest from being compromised as a result of greater foreign investment.

Although the government of India has permitted FDI in print media, it has divided the sector into two parts which has led to variations in FDI policy between a) the publication of newspapers and periodicals dealing with news and current affairs, and b) the publication of scientific magazines, specialty journals and periodicals.

News-based publications

Foreign investment in the publication of newspapers and periodicals dealing with news and current affairs still stands at its initial 26%, since 2002 subject to guidelines notified by the Ministry of Information and Broadcasting.

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Gautam Khaitan is a partner at OP Khaitan & Co. He works mainly on corporate and commercial matters and has considerable experience over a wide range of corporate and commercial transactions.

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E-mail: opkhaitan@opkhaitan.com

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