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Media and Entertainment |
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Ministry of External Affairs |
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The Indian media and entertainment industry (E&M) is in its transition phase and is currently one of the fastest growing sectors in the country. The industry is a combination of creativity and commerce, which offers immense opportunities. According to a report by FICCI Pricewaterhouse Coopers, this industry is expected to grow to INR 1 trillion by 2011. The industry is currently estimated to be worth INR 4,37,000 million. |
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Key Driver
Key drivers to the growth of the Indian E&M industry:
- Economic growth of the country and high purchasing power of Indians
- Gradual liberalisation of government policies
- Growth and privatisation of the radio industry
- Technological advancements and innovations
- Favourable regulatory initiatives
- Liberal foreign investment regime
- Greater interface with international companies
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Television Industry
The television sector comprises the major portion of the E&M industry (approximately 43 percent) and is currently estimated to be INR 191000 million. It is estimated to grow at an annual CAGR of 22 percent per annum to reach INR 519000 million by 2011. The shift towards CAS/DTH has been one of the major growth drivers of the industry. As a result, the industry has grown from a single public service sector broadcaster to a well-established one airing 300 channels across India. |
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Film Industry
Currently, the Indian film industry is valued at INR 85 billlion and is forecasted to grow to INR 175 billion by 2011. The major reason for the soaring growth rate is the increasing corporatisation of the industry, which is highlighted by the several public issues launched by film producing companies. |
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Radio Industry
The radio has been a most inexpensive source of entertainment in India. Initially, the radio was dominated by one state broadcaster – All India Radio. However, the radio sector, which has now been opened to private and foreign investment, is expected to reach INR 17 million by 2011. |
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Print Media
The relaxation of foreign ownership norms in 2005 was a significant landmark for the Indian print media industry. The foreign investment cap under the non-news category was increased from 74 percent to 100 percent, in the case of Indian companies publishing scientific/technical/speciality magazines/journals. Further, the industry is estimated to grow at 13 percent to INR 232000 million by 2011. |
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FDI Policy
The Government of India has in place a liberal and transparent investment policy, which allows 100-percent FDI under the automatic route in most media sectors.
- With regard to the film industry, 100-percent FDI is allowed (i.e., film financing, production, distribution, exhibition, marketing and associated activities relating to the film industry) subject to the following:
- Companies with an established track record in films, TV, music, finance, and insurance
- A company with a minimum paid-up capital of USD 10 million if it is the single largest equity shareholder and at least USD 5 million in other cases
- A minimum level of USD 2.5 million as foreign equity investment for the single largest equity shareholder and USD 1 million in other cases
- Debt equity ratio of not more than 1:1, i.e., domestic borrowings not exceeding equity
Radio Industry
A maximum of 20-percent FDI is permitted in the radio industry subject to approval from the Foreign Investment Promotion Board (FIPB) in addition to the guidelines notified by the Ministry of Information and Broadcasting.
Print Media
A maximum of 26-percent FDI is permitted in the news category. It is permitted in the case of Indian companies publishing newspapers and periodicals dealing with news and current affairs. The FDI under the non-news category increased from 74 to 100 percent with regard to Indian companies publishing scientific/technical/magazines/journals
Other Policies
- Broadcasting Bill
- Foreign Investment Policy
- Advertisement Policy
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Source: Ministry of external affairs |
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