FDI in digital news: Industry says move in right direction

The government’s decision to bring in 26 per cent FDI in the digital news media has been welcomed by most industry heads. The veterans have spoken in favour of the government recognising the coming up of the digital medium.

Ashish Bhasin, CEO Greater South, Dentsu Aegis Network and Chairman & CEO India, said: "I think it's a good thing because digital is becoming so important and it will really help the sector develop. It will give good opportunities to entrepreneurs to unlock their value."

Meanwhile, Gautam Sinha, CEO, Times Internet, highlighted the growing consumption of the digital medium. "At present, a significant part of the growth in the media sector is coming from digital consumption of content with around 25 per cent of the Indian youth being hooked to this medium. It is great that the potential of digital content is being recognised and an industry-specific exception is being made in the guidelines. I believe this move will definitely benefit the online media industry since it will help companies raise additional capital from oversea players/investors.”

“I think it is a good start and as we tread with caution, I would like to see it move higher in years to come,” Sinha added.

Alok Mehta, a veteran in the Indian Hindi journalism scene who has worked in all major media houses like The Times of India, Hindustan Times and Outlook, welcomed the move but also sought support for the Print media. “I feel good for the new generation to have FDI funding for digital media. On the other hand, I still feel the government should open doors for print content for a large number of new literate rural readers who will be the next big market at Panchayat level in 20 years. Digital can just support for service but for awareness on social economic issues rural people want to read news on Print and tabloid-size weeklies. This is important as we have 80 per cent rural area and not a single daily exclusive focused on villages and farmers.”