FDI in I&B sector dropped sharply in June quarter

Foreign direct investment (FDI) in India’s Information & Broadcasting (I&B) sector saw a sharp slowdown in the April–June 2025 quarter, even as overall FDI inflows across the economy held firm. According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflows into the I&B sector stood at Rs 76,143.29 crore as of June 2025, up modestly from Rs 75,590.84 crore at the end of March 2025 and Rs 74,369.17 crore at the end of December 2024.

These figures represent cumulative investments from April 2000 onwards, as tracked by DPIIT in its quarterly FDI fact sheets.

This means the I&B sector attracted Rs 552.45 crore in fresh FDI during the April–June 2025 quarter marking a 54.8% decline from the Rs 1,221.67 crore recorded in the January–March 2025 quarter.

While the slowdown could reflect cyclical corrections after a stronger start to the year, it also highlights how the I&B industry continues to attract a much smaller share of India’s total FDI pool compared to high-growth sectors like Telecommunications, Automobiles, and Computer Software & Hardware and others. 

For context, as per the same DPIIT fact sheet, telecom services and computer software and hardware together accounted for more than 25% of cumulative FDI inflows since 2000. In contrast, the entire I&B segment including print, broadcasting, and online media represents less than 1% of total FDI inflows during the same period.

The automobile sector, meanwhile, continues to register strong interest from global OEMs and EV investors, drawing thousands of crores in quarterly inflows driven by localisation, component manufacturing, and electric vehicle ecosystem expansion.

Overall, the FDI climate, however, has remained resilient. Despite the I&B sector’s relative stagnation, India’s overall FDI landscape remains robust. Cumulative inflows from April 2000 to June 2025 crossed Rs 92 lakh crore, according to DPIIT’s Quarterly Fact Sheet (Updated up to June 2025).

During the first quarter of FY26 (April–June 2025), total FDI inflow (equity + reinvested earnings + other capital)stood at ₹2,22,120 crore, with equity inflows contributing ₹1,59,428 crore. The period also saw continued investor activity in technology services, manufacturing, and renewables, indicating sustained confidence in India’s long-term growth story.

Analysts suggest that the moderation in I&B inflows may reflect regulatory caution, ongoing consolidation in entertainment and broadcasting, and limited large-ticket deals. However, emerging opportunities in digital media, content streaming, and sports broadcasting could attract renewed investor interest later in the year, especially as policy frameworks around FDI in digital news and OTT platforms evolve.

As India’s advertising, media, and entertainment industries continue to digitise rapidly, policymakers are expected to revisit investment norms to make the sector more attractive to global capital.