EU pitches for higher FDI in media

"The Indian government should change this protectionist thinking...broadcasting sector is still very closed," European Commissioner for Information Society and Media, Viviane Reding, told PTI in New Delhi, adding that the present FDI cap was "too low".

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.

Even as 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.

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.

"It is a good signal and will bring European investments in India," she said, and pointed out that for 2004, FDI inflows to India were around five billion Euros against 55 billion Euros to China.

"This is an opportunity," she said. Reding said there was a need for more dialogue between the business community of India and EU and facilitative atmosphere should be created for that.

She said India and EU can explore ways to enhance cooperation in research for new technologies and in the education sphere.