The Hindu Business Line : Indian editions of foreign news magazines allowed

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Indian editions of foreign news magazines allowed

Foreign direct investment capped at 26%.

Revised norms
An identical copy of the foreign edition or with added local content and advertising would be allowed.
Three-fourths of the board of directors and all key executives and editorial staff would have to be Indians.
An immediate circulation figure of at least 10,000 paid copies in the country of origin and a five-year track record of continuous publication are required.

Our Bureau

New Delhi, Sept. 18 In a departure from the existing norms, the Government on Thursday allowed Indian editions of foreign news and current affairs magazines stipulating a 26-per cent foreign direct investment ceiling.

Magazines such as the Time and Newsweek will now be able to publish Indian editions, as long as they follow the FDI ownership cap and rope in an Indian partner.

The decision will provide Indian readers access to foreign magazines at cheaper rates in comparison to the same magazine imported at higher rates.

Magazines such as Forbes and Fortune, which have already announced their plans for India, could soon be available at lower prices. “It was long overdue. But better late than never,” says the publisher of Outlook Group, Mr Maheshwar Peri.

There is a view that this move may be an indication of the Government’s future willingness to allow foreign editions of newspapers or perhaps raise the 26 per cent FDI cap in print to 49 per cent. “That should be the next process if India were to stand up and be counted,” added Mr Peri. The group markets and distributes Newsweek and distributes BusinessWeek in India, apart from owning the Indian editions of a host of international titles.

The Cabinet on Thursday gave its nod to “review the Print Media Policy”, which so far only allowed Indian editions of foreign scientific technical and speciality magazines or periodicals, with no curbs on FDI ownership.

To cost less

Announcing the move, the Minister of Information sand Broadcasting, Mr Priyaranjan Dasmunshi, said that the Indian reader would benefit immensely from the availability of cheaper editions of the magazines currently being imported.

Although the provisions of the Press and Registration of Books Act of 1867 do not distinguish between a newspaper and a periodical, a senior official clarified that this was strictly applicable to “magazines” publishing news and comments on public news.

Distinction in usage

“The PRB Act may not distinguish between a periodical and a newspaper, but there is a distinction in the usage,” said the official. Currently, international newspapers are only allowed to offer facsimile editions and enter into syndicated arrangements.

At present, Forbes magazine has tied up with the media house TV 18 for its plans for India, while Fortune will be bringing out a country specific edition in alliance with the Ananda Bazaar Patrika group of publications.

The Government has allowed publications of foreign speciality, scientific and technical magazines since 2002. Leading publishers such as Living Media and Outlook Publishing India have launched several titles already. Adding to the news stands, which are spilling over with new titles every day is publishing house Conde Nast that will be launching its men’s magazine, after the fashion magazines Vogue and GQ.

Last week, UK-based Dennis Publishing announced a joint venture with Media Transasia, responsible for Maxim magazine in India to launch at least three new brands.

Media stocks that publish English newspapers posted a mixed trend on Thursday. While Deccan Chronicle, which brings out the facsimile edition of the International Herald Tribune was down 1.08 per cent over the previous close, Jagran Prakashan was down 0.27 per cent. Stocks of HT Media, owners of Mint which has a content association with the Wall Street Journal, were up marginally (0.3 per cent).