The Union Cabinet decision this morning to open up print media to foreign investment has been rah-rahed by industry as a whole. Some professionals Indian television.com spoke to were euphoric, while others said they had expected it to happen. "It‘s extremely positive," said Mid-Day Multimedia managing director Tariq Ansari.
"The momentum to allow FDI in print media was too strong," said Indian Express Newspapers (Mumbai) CEO & editor-in-chief Shekhar Gupta. "It was expected. I am not surprised by the decision," said The Pioneer editor & managing director Chandan Mitra.

According to sources in The Times of India, its management had done a volte face on its position on FDI in print media. Sources say that Bennet Coleman & Co vice-chairman Samir Jain was in the Mumbai offices and an edit was expected to be out for tomorrow‘s edition of the paper welcoming the decision.

This morning, the English language daily paper had an editorial entitled "Meddling with the Media" which stated that "both prime minister Vajpayee and information and broadcasting minister Sushma Swaraj (who) had promised that the government would go by the recommendations of the Committee. It is not clear why they are moving now, and that too surreptitiously, to thwart its verdict. In adopting this stand, the Vajpayee government is treading a perilous path of ignoring the principle of consultation with not just cabinet and parliamentary committee, but the opposition as well, on matters of national importance. It is also setting the stage for undermining the country‘s security. Indians have long complained that the western media consistently skewed reporting on terrorism and its Pakistani connection till the attack on the World Trade Center. Ironically, this is a lesson that should have been best understood by a government that claims it has been hurt by the depiction of its prime minister by an American news weekly."

The Shobhna Bharatiya headed Hindustan Times has also been critical of the Union Cabinet decision calling it controversial saying that "the government decision comes in face of outright rejection of FDI in print media by a Parliamentary Standing Committee and stiff opposition from several political parties, including some ruling NDA constituents."

The chairman of the Mathrubumi group of newspapers and vice-president of the Indian Newspaper Society M P Veerendra Kumar has also trashed the decision, and has been quoted as saying "foreign investors will not care what we hold dear. They will be driven only by commercial considerations. We must oppose it."

However, financial daily Business Standard editor T N Ninan has being quoted as saying that that London-based pink paper Financial Times is extremely eager to pick up an equity stake in Business Standard Ltd.

On the political front, the Bharatiya Janata Party refused to comment on the issue, while the Congress (I) and the Left parties opposed the government‘s decision. The Congress (I) spokesperson said the party‘s position on the 1955 Cabinet resolution has not changed and that it would take an appropriate position on it when it comes up before parliament.

The Communist Party of India Marxist said that the government was playing a dangerous game by handing over the print media to imperialist forces which have been carrying out a malicious propoganda. Its spokesperson, Harkishen Singh Surjeet, has been quoted as saying that it will be harmful for democracy and would benefit foreign companies and other countries.

It is good news only if the print media partners, the foreign investors are genuine parties. Print has a tremendous impact on people, much more than that exerted by television - print can still mould public opinion, as has been evident in the election results gone by. It is important that the government thoroughly checks the credentials of foreign investors who are interested in tying up with Indian media. A regulatory body needs to be set up to look into all these issues.

Of course, it is also difficult to monitor whether editorial and managerial control remains in Indian hands, as it is always possible to put dummy people on the board?it becomes the government‘s responsibility to see that the safeguards instituted are implemented properly.

Of course, the decision to allow 74 per cent FDI in non-news and non-current affairs segment is a boon for technical and scientific journals in the country.

I am not surprised by the timing of the decision, it has long been debated by committees and the government has taken a decision based on the reports. The management and editorial controls vested with Indians are necessary safeguards needed at the start of such an exercise, but of course, these will not act as a deterrent for genuine business propositions, but will ensure that there is no complete sell out to foreign companies.

On whether the decision to retain editorial and managerial control while allowing up to 74 per cent in non-current affairs and non news segment is practical?
"It is a good beginning, and people will definitely not invest only to exercise control. Investors are not likely to come in only with the intention of pushing their own agenda as readers in India are quite sensitive?.

"Besides, it is a good idea to have Indian managers who can manage the peculiarities of the Indian media?."

The decision to allow 26 per cent FDI in print media is a good opportunity to bring in foreign capital and foreign technology in a sector that has on the whole stagnated for a while in the country.

However, the vast bulk of the Indian press will have to upgrade itself before it can be attractive enough for foreign investors. The attractive media groups are already well-capitalised and will not exactly be looking for foreign investment. There are a few firms in the middle rung, which will however be looking at FDI and these are the ones that will benefit.

In India, there are three categories of press firms - one, which are not trying to be commercial ventures, second which are out and out commercial, and the third, which is trying to strike a balance between the two. It is this third segment, which will garner the maximum FDI.

It‘s extremely positive. It brings print on the same platform as broadcasting and telecom. There were concerns of national security and these have been addressed in the Cabinet decision through safeguards. So far there is nothing which could be a problem in the new announcement.

We do not believe that FII investment being allowed in print is a natural consequence of this current decision. That‘s an issue which has to be decided by the RBI. Tariq Ansari Managing director Mid-Day Multimedia

The decision is a progressive move, however, it will have no immediate impact on our plans. Last year we had an IPO. We have the capital, however, we may need some technology. We have no reason to sell out at this stage. We have our plans but a divestment of equity to a foreign investor is not on the cards now. The opening up of FDI gives us an option sometime down the road.

We do not believe that FII investment being allowed in print is a natural consequence of this current decision. That‘s an issue which has to be decided by the RBI.