DNPA welcomed FDI in digital media sector

New Delhi: The central government has opened many sectors of the country for foreign investment. The government has approved 26 percent FDI in digital media. This decision of the government has been welcomed by the digital media organizations. The Digital News Publishers Association said the government's decision would treat all types of news companies, including producers and aggregators alike. This decision will help in taking policy decisions related to digital media, as they will be able to be confident of the results of these decisions.

Pawan Aggarwal, chairman of the Digital News Publishers Association, said, "The government's decision to reduce the FDI limit to 26 percent for digital news media will provide equal opportunities for Indian news publishers and news aggregators." The DNPA has 10 founding members, including veteran news media companies in English, Hindi and other regional languages. News aggregators like Daily Hunt, Inshorts, Hello, UC News and NewsDog are working in India. They have a greater audience reach than Indian news publishers.

Due to ambiguous law, they get a large amount of foreign investment. These news aggregators 'source' or 'link' the news article from many sources in a single feed for the user. They often use content from thousands of content providers to decide which articles to promote to consumers. In many cases these aggregators do not trust the editor and on the basis of the algorithm decide which article to showcase. There is also the danger of misinformation and unverified news publicity.

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