India Mulls Liberalization of Foreign Media Ownership Rules

08 February 2001

One hundred percent foreign ownership of certain Indian media sectors could result from a reappraisal of the current rules by the Indian government.

The sectors tagged for potential liberalization are advertising (currently a 74% limit), film, cable TV and satellite TV – but foreign companies will remain barred from direct investment in Indian newspapers, magazines and terrestrial broadcasters.

Government ministers take the view that foreign ownership of an ad agency or a film studio would not compromise national security or "values”; and although a meeting of ministers has recommended relaxation of the present rules, this requires cabinet approval before proceeding to the next legislative stage.

News source: Advertising Age - International Daily