New Delhi: The Commerce and Industry Ministry is seeking views of the Information and Broadcasting Ministry on clarifications sought by various stakeholders on 26 per cent FDI limit in digital media, according to reports.
The government in August allowed 26 per cent foriegn direct investment under approval route for streaming of news and current affairs through digital media.
The FDI cap, however, has led to confusion for some sections.
Elaborating on the matter, an analyst explained that clarity was needed in case of television broadcasters who stream news online as FDI limit is 49 per cent. So there is confusion about which limit would be imposed – 26 per cent or 49 per cent.
Similarly, some news websites are wholly owned by foreign companies.
“Several foreign strategic intermediaries have set up their operations in India, as digital media was categorized as 100 per cent FDI under the automatic route. A clarification on the non-applicability of the new FDI measure would be critical for them to continue making massive investments in India,” Internet and Mobile Association of India has said.
The Department for Promotion of Industry and Internal Trade (DPIIT) is seeking views of I&B Ministry as FDI in the sector is permitted through government approval route, so the ministry has to be consulted, an official said.