FDI in Entertainment & Media

Foreign Direct Investment in Indian Media & Entertainment Industries

Entertainment and media industry is gaining lot of importance in India. India’s media and entertainment industry is projected to grow by 18 per cent over the next five years and is expected to become a 1.157 trillion industry by 2012.

Further, online entertainment is the next big thing for studios and broadcasters. The biggest changes are expected in the Internet, television distribution, video games and casinos sectors.

Media and entertainment such as film, television, advertising, prints media and music industry among others are growing rapidly in India. The media and entertainment industry in India is likely to grow 12.5 per cent per annum over the next five years and touch US$ 20.09 billion by 2013.

Foreign Direct Investment upto 100 percent is allowed in most of the sectors, more specifically,

For Film Industry – Upto 100%

For Radio Industry – Upto 20%

For Print Media - Upto 74% publishing scientific/technical and specialty magazines/ periodicals/journals
- Upto 26% publishing newspapers and periodicals dealing in news

Investment Opportunities

Recent Steps for the Improvements of Media & Entertainment Industry

Allowing 49 per cent foreign holding in cable TV and DTH.
The government has allowed 100 per cent FDI in fax editions of magazines and newspapers.
Recently, the government has allowed companies with core business in news segment but hived off non-news business, to raise funds from overseas beyond the stipulated FDI limit of 26 per cent. Such companies can raise and route funds from overseas through its non-news arm, which will not be calculated as foreign investment.
Permitting setting up of up linking hubs for satellite up linking by private TV broadcasters from Indian soil.
Giving industry status to the films segment.
Opening FM Radio operations to the private sector.
The government has allotted US$ 50.13 million in the current Five-Year-Plan for various development projects of the film industry. The funds will be utilized to set up a centre for excellence in animation, gaming and visual effects among others.