Political India: Engaging America

Comment: The international media, backed by governments such as those of the EU, has started to pressurize India to raise the cap on FDI in Indian media. This marks a new phase in the lobbying of the Indian government for this cause, which has so far been restricted to domestic pressure for the most part. It cannot be overemphasized that the stakes involved are enormous, and in fact much larger than what most players in this game would admit- they include not only market expansion possibilities for entrenched, powerful media barons in the West, but also the potential erosion of Indian democratic values/institutions by allowing hegemonic foreign interests free reign in the country.

From Siliconindia.Com:

EU urges for higher FDI limits in Indian media

ging the Indian government with "protectionist thinking," European Union today asked the government to hike the FDI cap in media from the present level of 26 percent.

"The Indian government should change this protectionist thinking...Broadcasting sector is still very closed," European Commissioner for Information Society and Media, Viviane Reding, said adding the present FDI cap was "too low."

Although the government allowed facsimile edition of foreign newspapers earlier this year, it has barred them from carrying any advertising or content specifically targeted at Indian audience.

Foreign Direct Investment in the media sector, both print and electronic, is currently restricted at 26 per cent and foreign newspapers are not allowed to have Indian editions.

Reding, who is slated to meet Information and Broadcasting Minister Priyaranjan Dasmunshi and Communications & IT Minister Dayanidhi Maran, lauded the raising of the FDI cap in telecom to 74 per cent from 49 per cent.