In a surprising move, the central government announced that FDI limit would be increased for private FM sector, among other sectors; a decision that has been welcomed by the radio sector which has been asking for an increase in foreign investment limit for years. However, many experts believe it will only be beneficial for large radio networks
“At some point community radio will start picking up and this will largely be funded by the large FMCGs who want to reach out to small villages and tier 4 cities,” says Ashish Pherwani, Partner (Advisory Services) at Ernst & Young, as he talks about the radio ecosystem which is one of his focus areas
Rakesh Jariwala & Ashish Pherwani, Partners, EY share their opinion on start-up funds, introducing service tax on sale of ad space, measures to reduce litigation on various direct and indirect taxes & funds for community radio stations proposed in the Budget
The two-day Indian Magazine Congress, organised by the Association of Indian Magazines (AIM) in Mumbai, also saw the unveiling of a report on the state of the Indian magazine industry by Ernst & Young. The report addresses some of the key problems of this industry, including the need for a proper measurement metric system and the need to firm up the distribution network, among others.