On digital media, the government has informed that news aggregators and news agencies are required to follow 26% foreign investment (FDI) rules in digital media. According to the order given, the CEO of the company should be an Indian, and all foreign employees who have been working for more than 60 days will be required to take security clearance. By this rule, China and other foreign companies are able to rein in India who are investing in digital media. Many Chinese and foreign companies like Daily Hunt, Hello, US News, Opera News, Newsdog are currently active in India. It is being speculated that they may hurt the interests of the country. The insistence that it had an impact on the US presidential elections in 2016 can impact the same in India.
Let us tell you that in August 2019, the cabinet gave permission to 26% FDI in digital media. According to the new order of the Department for Promotion of Industry and Internal Trade (DPIIT), now all these companies have to comply with the cap of 26% FDI within a year with the permission of the Central Government. All digital media news institutions have been given one year to meet the shareholding requirements.
The objective of this rule was to create an ecosystem of self-reliant India and responsible digital news media. At the same time, companies will also have to follow certain conditions, such as most of the directors on the board of the company should be Indians. This move will put fake news on digital media.