49 per cent FDI in print media safe: Ambika Soni

With the media reeling under the financial crunch, Information and Broadcasting Minister Ambika Soni has backed increasing FDI (foreign direct investment) in print media to 49 per cent, saying "it is safe".



"I think it is a good suggestion," Soni said in an interview when asked about her views on increasing FDI in print media from 26 per cent to 49 per cent.

"We already have 26 per cent FDI. A large number of newspapers and the entire journalist fraternity is for the infusion of more capital into print media so that they can have better working conditions, and the media is facing a financial crunch," she said.

"I feel 49 per cent is safe. It would not give control to someone from outside," she said.

Soni, however, stressed that the government will consult all stakeholders before taking this crucial decision. "But this is something about which I would like to talk to those who are not of the same view," she said.

Soni's remarks indicated the UPA government's interest in raising the FDI ceiling in print media from 26 percent to 49 per cent as recommended by the Telecom Regulatory Authority of India (TRAI) in its recent report.

The 49 per cent FDI, as proposed by TRAI, also covers foreign institutional investors. TRAI has also recommended a raise in the ceiling for cable networks from the existing 49 percent to 74 percent and for FM radio, from the existing 20 percent to 49 percent.

The proposed hike in FDI is being opposed by some media houses, but the government is looking at the issue afresh in the light of the capital crunch that small and medium newspapers are facing.

Foreign Direct Investment needs to be encouraged: President

Praising the performance of the Manmohan Singh Government for being able to accelerate economic growth in the past five years to a record average of 8.5 per cent, President Pratibha Devisingh Patil today emphasised the need to encourage foreign direct investment "through an appropriate policy regime", and said the government would bring a legislation to establish a regulator for the pension sector.

Addressing the joint session of Parliament, the President said the country had benefitted from large foreign investment flows in recent years and it would be encouraged through an appropriate policy and stressed the need for augmenting resources in the banking and insurance sectors to serve the needs of society better.

Besides, the Government, she said, would recapitalise the public sector banks to strengthen their financial position and also bring legislation to establish a regulator for the pension sector to achieve these objectives.

Referring to the Government record growth of 8.5 per cent, the President said this resulted in impressive expansion in high quality jobs, also enabling the government to guarantee rural employment and expand social and economic infrastructure in an unprecedented manner.

Similarly, the government also performed well in agriculture sector by increasing public investment in this field and in education it expanded the access by opening new schools and educational institutions, she added.

Despite a slow down in growth in the current financial year on account of global recession, the government, she said, responded to the situation with a number of measures, including three stimulus packages, which had begun to show results.

At the international level, especially through the G-20 forum, the government was emphasising the need for global coordinated action to bring in necessary reforms to meet the situation, she added.