DPIIT issues clarification on 26% FDI in digital media
by Nidhi Bhati
The Department for Promotion of Industry and Internal Trade (DPIIT) has issued a clarification regarding the 26 per cent foreign direct investment (FDI) approved under government route for uploading or streaming of news and current affairs through digital media in August 2019. The DPIIT clarified that the decision of permitting 26 per cent FDI through government route would apply to certain categories of Indian entities, registered or located in India. The categories include entities uploading or streaming news and current affairs on websites, apps, other platforms; news agencies which gathers, writes and distributes or transmits news, directly or indirectly to digital media entities and/or news aggregators and news aggregators which, using software/web applications, aggregates news content from various sources such as news websites, blogs, podcasts, video blogs, in one location. The DPIIT further stated that these companies would be required to align their FDI to the 26 per cent level with the approval of the central government, within one year from the date of issue of this clarification.