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I&B 10th-biggest FDI magnet in services sector in FY16
NEW DELHI: The Information and Broadcasting ( I&B) sector has received $515.1 million in foreign direct investment (FDI) during the current financial year from April to October, which is twice as much as what the sector had attracted for the full fiscal in financial year 2014–15, as per the Economic Survey 2015–16.
It is pertinent to note that the liberalised FDI norms in TV distribution, news channels, and FM radio along with 14 other sectors had come into effect from November 2015. The quantum of inflow after the government upped the FDI cap is not available.
During the financial year 2014–15, the FDI inflows in I&B sector stood at $255 million. For the 15-year period from April 2000 to October 2015, the total FDI inflows in the sector were at $4.48 billion.
The I&B sector is no. 10 in terms of FDI received within the services sector. The other top sectors within the services sector to receive FDI are telecommunications, trading, computer hardware and software, construction, hotels and tourism, hospital and diagnostic centres, consultancy services, and sea transport.
As per preliminary data, the survey noted that cable TV digitisation has led to increase in the tax collection of the central and state governments due to transparency in the subscriber base.
In order to achieve universal digitisation by 2017, the government is implementing the Broadcasting Infrastructure Network.
The survey also stated that India is the world’s second-largest TV market after China with 168 million TV households, implying a TV penetration of 61 per cent. There are about 847 satellite television channels, 243 FM radio channels and 190 community radio stations operating in India.
India’s broadcasting distribution network comprises 6000 multi-system operators (MSO) and seven direct-to-home (DTH) operators, and two headend-in-the-sky (HITS) operators.
The survey revealed that India has been experiencing higher volume of content consumption due to increasing per capita consumption, media penetration and use of 3G devices.
DTH in India is also growing at a rate of about one million per year, the survey stated. It further stated that HITS technology would play a key role in achieving the goal of 100 per cent digital distribution in India.
According to the survey, the Indian radio industry is expected to grow to Rs 33.6 billion by 2018 from Rs 8.4 billion in 2008. There exists a large demand for FM radio in many cities that remain untapped by private FM radio broadcasting.
The government of India has taken a decision to allow 839 more private FM radio channels in 294 cities and towns under FM Phase III in addition to the existing 243.
The Indian film industry, which remains the world’s biggest producer of films with more than 1,000 films each year in all languages, is projected to be worth Rs 18,630 crore (Rs 186.3 billion) by 2018.
During 2015–16 (April–December), the government had accorded permission for 25 foreign productions to shoot films in India. It has recently accorded administrative approval for setting up of the Film Facilitation Office (FFO) with a view to promoting and facilitating film shootings by foreign filmmakers in India. The National Film Development Corporation (NFDC) has been designated to operate FFO units at Mumbai, Delhi, Chennai and Kolkata.
The animation, visual effects, gaming and comics (AVGC) sector is estimated at around Rs 4,490 crore (Rs 44.9 billion) in 2014, with estimated projected growth of 13 per cent. In order to address the issue of skilling in the animation, gaming and visual effects sector, the government is in the process of setting up a National Centre of Excellence in Animation, Gaming and Visual Effects (NCOE).