Government to decide on fate of digital media companies with FDI higher than 26 per cent

Source: The Hindu Business Line, Nov 11, 2019

New Delhi: Flooded with concerns from media companies on the recent imposition of a 26 per cent limit on foreign direct investment (FDI) through the government route in the digital media sector, the Centre is looking at coming up with a clear decision on how such companies that already have a foreign share holding above 26 per cent should be treated.

“The DPIIT has received numerous queries on the implications of the FDI limit of 26 per cent in digital media. It is closely examining its options regarding the fate of the companies that already have FDI greater than 26 per cent. Most other concerns need only some clarifications and explanations,” an official told BusinessLine.

The Information and Broadcasting Ministry has sent its comments on the matter to the DPIIT which is now being examined by it. “A decision could be taken based on a common understanding of the matter and in consultation with other key Ministries such as Finance,” the official said.

In August this year, the DPIIT came up with a Press Note permitting 26 per cent FDI under government route for uploading/streaming of news and current affairs through digital media. This came as a jolt for media companies as prior to that FDI caps existed only for the Indian print media at 26 per cent and news broadcast television companies at 49 per cent and there was no such cap on digital media.

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Government looks to ease more FDI rules to attract investments

Source: ETRetail.com, Oct 21, 2019

NEW DELHI: Weeks after it eased the foreign direct investment (FDI) regime, the government has begun a fresh review for further liberalisation of sectoral caps as well as segments that are not on the automatic list, as it courts more overseas investors to revive the investment cycle.

The department for promotion of industry and internal trade (DPIIT) has initiated an in-house exercise to identify additional sectors for easier FDI rules before it takes them up with the ministries concerned, sources told TOI.

“While most sectors are already on automatic route, we are seeing if there is further scope,” said an official. Just last month, the Cabinet cleared rules for coal mining, single-brand retail, contract manufacturing and digital media, while the finance ministry changed the norms for segments of the insurance business. Read the rest of this entry »

India-bound FDI may face thorough frisking

Source: The Economic Times, Oct 17, 2019

NEW DELHI: India is taking a fresh look at security protocols to be followed by foreign direct investors as concerns rise over money coming in from countries that New Delhi has sensitive ties with and monitors closely.

The Department for Promotion of Industry and Internal Trade (DPIIT), the finance ministry’s department of revenue and the home ministry are holding discussions on the matter, said people with knowledge of the matter. Read the rest of this entry »

DPIIT notifies FDI relaxation norms in coal mining, contract manufacturing, single-brand retail

Source: The Economic Times, Sept 18, 2019

NEW DELHI: The Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday notified the recent decisions to relax foreign direct investment (FDI) norms in sectors such as coal mining, contract manufacturing, and single-brand retail trading.

The DPIIT, under the commerce and industry ministry, deals with FDI-related issues. It notifies FDI-related government decisions through Press Notes.

The department has also notified the decision to allow 26 per cent FDI in digital media, a move over which certain industry and experts have raised issues. Read the rest of this entry »

FDI grows 28% to $16.33 bn in Q1 FY20; Singapore largest source: Govt data

Source: Business Standard, Sept 05, 2019

New Delhi: Foreign direct investment into India grew by 28 per cent to $16.33 billion during the first quarter of the current fiscal, according to government data.

Inflow of foreign direct investment (FDI) during April-June of 2018-19 stood at 12.75 billion.

Sectors which attracted maximum foreign inflows during April-June 2019-20 include services ($2.8 billion), computer software and hardware ($2.24 billion), telecommunications ($4.22 billion), and trading ($1.13 billion), the commerce and industry ministry data showed. Read the rest of this entry »

FDI norms eased for single brand retail, digital media, manufacturing

Source: Business Standard, Aug 29, 2019

New Delhi: The Union Cabinet on Wednesday relaxed the rules for single-brand retail, more than seven years after the foreign investment cap was removed for the segment to attract marquee foreign brands such as Gucci, Louis Vuitton, Ikea and others into the country. The latest government move is in line with the recent Budget announcements on FDI changes.

While 30 per cent local sourcing remains a mandatory condition for single-brand retail, the government has now agreed to a long-standing industry demand to make things easier for foreign retailers. With the change, foreign retailers’ India buy for exports will be factored in to meet the 30 per cent domestic sourcing norm. Companies in the single-brand space can also start online retailing without opening brick-and-mortar stores first, something that was not allowed earlier. While 100 per cent FDI is allowed in single-brand retail, whenever the foreign investment exceeds 51 per cent, the mandatory local sourcing norm kicks in. Read the rest of this entry »

Govt may soon consider easing local sourcing for FDI in single-brand retail

Source: Business Standard, Aug 26, 2019

New Delhi: The government will soon consider a proposal of relaxing rules for complying with the mandatory 30 per cent local sourcing norms by foreign single brand retailers, official sources said.

As per the proposal, single-brand retail firms would also be permitted to open online stores before setting up brick-and-mortar shops.

Currently, online sale by a single-brand retail player is allowed only after opening of physical outlet. Read the rest of this entry »