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HomeNewsNational NewsBudget 2019: FDI for animation sector; no custom on goods for manufacturing STBs; new TV channel to promote startups
Friday, 05 July 2019 13:41

Budget 2019: FDI for animation sector; no custom on goods for manufacturing STBs; new TV channel to promote startups

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On 6 June, the new finance minister Nirmala Sitharaman said that the central government is looking to open up the foreign direct investment (FDI) in the animation, visual effects, gaming and comics (AVGC) industry.

She said: “The government will examine suggestions of further opening up of FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stakeholders.”

She added that there will be no customs duty on capital goods used for manufacturing of set top boxes (STBs). The customs duty on optical fibres, optical fibre bundles and cables has been hiked to 15% from 10% earlier. In the case of Digital Video Recorder (DVR) and Network Video Recorder (NVR), the customs duty has been hiked to 20% from 15%.

At present, 100% FDI in is permitted under the automatic route in non-news channel and broadcast distribution services like cable, direct to home (DTH), and headend in the sky (HITS) platforms. The FDI limit in TV news and FM radio is 49% under the government route while in print media the same is 26%.

The new FM also announced a proposal to start a new TV programme for startups under the Doordarshan umbrella. The programme will be managed by the startups themselves.

She said: “We propose to start a television programme within the DD bouquet of channels exclusively for start-ups. This shall serve as a platform for promoting start-ups, discussing issues affecting their growth, matchmaking with venture capitalists and for funding and tax planning.”

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