The Union home ministry is opposed to any move to increase the FDI cap in the broadcasting and print media, apprehending that allowing more foreign investment in the sensitive sectors may compromise the country’s security.
Currently, the sectoral cap for FDI in FM radio, uplinking news and current affairs TV channels and in print media is 26 per cent and the commerce ministry has proposed to raise it to 49 per cent through the automatic route.
However, the home ministry is concerned that big foreign media players with vested interests may try to fuel fire during internal or external disturbances and also can encourage political instability in the country through their publications or broadcasting outlets, the sources said. The home ministry has said opening up of current affairs TV channels, newspapers and periodicals dealing with news and current affairs may lead to meddling in India’s domestic affairs and politics, sources said.
Arguing in favour of control of media houses by Indians, ministry officials said increase of FDI in broadcasting and print media may also allow foreign players to launch propaganda campaign during any national crisis as well as when interests of any particular country is harmed through any government decision.
Following the home ministry’s strong objections, a high-level meeting chaired by Prime Minister Manmohan Singh on July 16 did not clear the commerce ministry’s proposal for increasing FDI in broadcasting and print media to 49 per cent through automatic route, the sources said.
Taking cue from the home ministry’s objection to hike FDI in broadcasting and print media, the information and broadcasting ministry is also learnt to have sought advice from Trai and Press Council of India on the matter.
The I&B ministry had earlier informed DIPP that consultations process with Trai and PCI would take some time so existing limits of FDI caps and entry routes may continue.