Bombay -- The Indian government is looking at permitting 100% foreign ownership of copanies in the advertising, film, cable TV and satellite TV industries. Newspapers, magazines and terrestrial broadcasting, however, will not be open to any foreign direct investment. Currently, there's a ceiling of 74% foreign ownership in advertising agencies. Although these decisions were taken at a group of ministers meeting, the proposals still need to get approval from the Indian government's cabinet before legislation can progress to the next stage. The thinking is that complete foreign ownership of an ad agency or a film studio would not compromise national security or "values."
Copyright February 2001, Crain Communications Inc.