Indian newspaper scene set to change with foreign investment

By Deepshikha Ghosh, Indo-Asian News Service

New Delhi, June 26 (IANS) Time magazine, that sparked controversy by
publishing an unflattering article about Prime Minister Atal Bihari
Vajpayee, may have a New Delhi edition -- and then more Indians would read
its articles before the Indian external affairs ministry reacted to it.

But this is only a small peek offered by the information and broadcasting
ministry into the future after the government's decision to allow foreign
direct investment in the Indian newspaper business.

According to experts and media representatives, the 26 percent foreign
direct investment in news and current affairs translates into sweeping
social and cultural changes in Indian life.

"It will bring in competition, quality and a level playing field," an upbeat
Prabhu Chawla, editor of India Today newsmagazine, told IANS.

Chawla said the improved quality of news production would benefit the
consumer greatly.

India Today's is among the media groups that have fought hard for permission
for foreign investment in Indian media. It has been seeking a tie-up with
Time magazine.

The move also benefits newspapers such as The Indian Express -- which may be
looking at investment by the Wall Street Journal of New York -- and the
Business Standard, in which the Financial Times of London had years ago
sought to invest.

Said Indian Express CEO and editor-in-chief Shekhar Gupta: "There will be
many more newspaper groups now and more transparency."

The Pioneer, with its falling circulation, has also been scouting for
investors. These are the organizations that have hailed the decision.

Those who haven't are the unchallenged market leaders in the sector, such as
Hindustan Times, Times of India and Hindu.

Says T.C.A Srinivasa-Raghavan, consulting editor of Business Standard, in a
commentary in the media watchdog portal The Hoot: "Those newspapers that
don't have money have been arguing furiously in favour of FDI. Those that do
have been arguing equally vehemently against it."

What does it mean to citizens?

The tabloid culture that has Britain and many other countries in its thrall
will seep into India. News will not be the same any more without the "Daily
Blahs" that report alien viewings and such events to attract readers,
pointed out Prabhash Joshi, former Janasatta editor.

"Newspapers will be more focused towards corporate advertisers," Joshi said.

Since the reader is the consumer, lifestyle reporting will increase. Page
three will come on to Page One, insist media observers such as N. Bhaskara
Rao of the Centre for Media Studies. "Foreign content of newspapers, which
had reduced by 10 percent over the years, will increase again."

He also said India would have the largest English reading population in a
few years.

"The growth rate of English is rising in India, contrary to what is usually
believed. When foreign players enter the market, English readership will
increase from one percent to 8 percent of the population."

At least one global player will come to India by March, asserts Global
Management consultant Raja Shastri. "Vernacular newspapers will tie up with
international brands to enter the English market. Indian business magazines
can also expect a good readership in the west."

Says Times of India's director (business) M. Venkataraman: "Editorial
policies will subsequently change, if not immediately, then in two years."

Many journalists have not stopped rejoicing since the decision. "It means
more jobs in an industry where a few newspapers monopolize the market and
the number of unemployed professionals is increasing," said a reporter of a
national daily that has resisted the move.

--Indo-Asian News Service


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