New Delhi: The Union government has released a set of clarifications that shed more light on its decision last year to impose a foreign direct investment (FDI) cap of 26 per cent for digital media companies that upload or stream news and current affairs.
According to the clarification, the FDI cap will not only apply to news agencies – which gather, write and distribute news to digital media entities – but also aggregators, which collate content from various sources.
These companies would be required to align their FDI to the 26% level with the approval of the central government, within one year from the date of issue of this clarification, the Department for Promotion of Industry and Internal Trade said.
In August last year, the Union Cabinet approved 26% FDI under government route for uploading or streaming of news and current affairs through digital media, on the lines of printe media.