Budget
Infrastructure status for b’cast industry, reduce customs duty on STBs: FICCI budget wish-list
NEW DELHI: The Broadcasting industry should be granted infrastructure status to push the digitisation agenda of the government.
In its wish-list submitted to Finance Minister Arun Jaitley – who also holds the Information and Broadcasting portfolio – the entertainment wing of the Federation of Indian Chambers of Commerce and Industry (FICCI) said that in the present era of convergence, the distinction between Telecom, IT and Broadcasting sectors is getting blurred.
The Telecom sector is already treated as “infrastructure service” and so giving the infrastructure service status to broadcasting will provide a level playing field to the sector.
Broadcasters and distributors will be aided with better and affordable financing options in the very capital intensive growth phase.
The FICCI wish-list covers television and radio broadcasting, cinema and animation and gaming, apart from suggestions relating to advertising in the media.
At the outset, FICCI says the Indian media and entertainment industry grew from Rs 821 billion in 2012 to Rs 918 billion in 2013, registering an overall growth of 11.8 per cent. Given the impetus introduced by digitisation, continued growth of regional media, new government formation, strength in the film sector and fast increasing new media businesses, the industry is estimated to achieve a growth rate of 15.3 per cent in 2014 to touch Rs 1059 billion. The sector is projected to grow at a healthy CAGR of 14.2 per cent to reach Rs 1786 billion by 2018.
Television clearly continues to be the dominant segment, but strong growth has been posted by new media sectors, whereas gaming and digital advertising recorded a strong growth of 25.5 per cent and 38.7 per cent compared to the previous year. The music sector has shown a decreasing growth (-9.9 per cent growth in 2013 over 2012 compared to 18 per cent growth in 2012 over 2011) despite strong content and digitisation.
Radio is anticipated to see a spurt in growth after the roll-out of Phase III licensing. The benefits of Phase I cable digital access system (DAS) rollout, and continued Phase II rollout are expected to contribute significantly to strong continued growth in the TV sector revenues and its ability to invest in and monetize content.
The sector is expected to grow at a compounded annual growth rate (CAGR) of 18.1 per cent over the period 2013 to 2018.
Set Top Boxes
It said the expected investment in set top boxes alone is around Rs 20,000 to Rs 25,000 crore and therefore wants the customs duty levied on STBs to be on the transactional value and not the maximum retail price. Basic customs duty should be reduced to five per cent if not zero per cent as this will help push digitisation faster, which would lead to transparency which will result in manifold increase in the tax revenues from Service Tax, Entertainment tax and Income-Tax.
Television Sector
Referring to tax withholding on Transponder hire charges (Section 9(1)(vi) Explanation 6 of Income Tax Act, 1961), FICCI pointed out that the Finance Act 2012 amended the section to retrospectively include payment for transponder hire and other charges as royalty. However FICCI wanted a clarification to be issued that Transponder hire charges are not “royalty” as Courts in India have held that such charges are not ‘royalty’ or ‘Fee for Technical Service’ (FTS). The law was retrospectively amended to nullify the effect of the judicial decisions. This is an artificial deeming provision hurting industry. These are standard services and no transfer of technology. OECD commentary also does not treat such payments as “royalty” or “FTS”.
On tax withholding rate on Royalty (Section 115A (1) (A) & (B) of Income Tax Act, 1961), FICCI said the Finance Act 2013 increased withholding rate from 10 per cent to 25 per cent. However, it wanted that the 10 per cent withholding rate should be restored as most of the Tax Treaties have 10 per cent or 15 per cent rate and most of the contracts are on ‘grossed up’ basis leading to 37 per cent tax burden on Indian payer. This assumes almost 100 per cent profit on the payment at current corporate tax rate and is absurd, says FICCI. The change will also reduce the cost to Indian business/consumer and would benefit Broadcasting, DTH and HITS sectors.
Section 72A of the Income Tax Act 1961 allows carrying forward of losses in case of amalgamation or merger for service industry. Currently, all industrial undertakings in the Manufacturing, Software, Electricity, Telecom, etc. sectors are allowed carry forward of losses in case of merger /amalgamation, but the services industry undertaking in general is not allowed such carry forward. Section 72A(7)(aa) should be amended to include Broadcasting, Media and Entertainment sector if not all services sector undertakings to ensure a level playing field with other services industry like Telecom, Software etc. as this will encourage consolidation for rapid growth.
Credit under the ‘Served From India Scheme’ under the Foreign Trade Policy is currently available as set off against excise and customs duty liability and the period of utilisation of SFIS credit is two year and is not transferable. Therefore, the SFIS credit should be allowed as set off against Service Tax liability in addition to Excise and Customs Duty liability. SFIS credit should be made transferable or tradable outside the group entities similar to DEPB scheme. The period of utilization of SFIS credit should be increased from two to five years. FICCI says that for the purpose of CENVAT credit, there is no distinction between Service Tax and Excise duty and not all companies have import requirement and thus the benefit of the scheme is not really received by such company. Making SFIS credit transferable will give level playing field with DEPB and other incentives schemes.
Doordarshan
FICCI wants Doordarshan to launch DD Kids, a channel dedicated to kids’ content in “digital terrestrial” space as it would promote intellectual property creation in India in the field of animation and other content for children.
Radio
Referring to radio, the industry body said it wanted reduction of customs duty on radio broadcasting equipment to four per cent especially on transmitters, consoles etc which are not produced in India. It said there is no justification for the high CVD and additional CVD being charged and India has one of the highest import duty rates for transistors.
It wanted a removal of the service tax on advertisement in radio since it competes with newspapers at local level even though there is no service tax on advertisement on newspapers. This will also provide a level playing field to radio.
Referring to FM Radio Phase III, FICCI wanted assistance to raise money, provide priority Provide tax holiday for five years for new capital investment in Phase III and provide a fiscal sector lending sector status so that radio industry is able to access easier availability of finance at with lower interest rates. This was because a large amount of capital is required for the roll out of phase III of FM radio privatization.
MUMBAI: Anuj Singhal, managing editor at CNBC- AWAAZ and CNBC BAJAR, operates at the sharp end of India’s business news ecosystem. With over two decades in business journalism, he has earned credibility for decoding policy, markets and macro trends for millions of Hindi-speaking investors. Equal parts newsroom leader and market analyst, he shapes editorial direction while anchoring flagship shows that break down the economy, politics and corporate India in real time.
Known for cutting through jargon and hype, Singhal blends data, discipline and clarity — a mix that has made him one of the most trusted voices in Hindi business news.
In this interaction, he discusses the Union Budget, trade deals, newsroom strategy and what truly moves markets and ratings.
• What was the single most market-moving announcement in this Budget, and why?
The most market-moving element was the clear commitment to fiscal consolidation without compromising capex. The glide path on fiscal deficit reassured bond markets and foreign investors, while sustained public investment kept growth expectations intact. That balance removed a big overhang for both equities and debt.
• Do you see this Budget as growth-oriented, fiscally cautious, or politically calibrated?
This Budget is growth-led but fiscally disciplined. It avoids overt populism, stays within macro guardrails, and prioritises medium-term competitiveness over short-term optics. Politically, it is restrained; economically, it is deliberate. The message is clear: stability over spectacle.
• How is CNBC-AWAAZ programming different, especially in decoding trade deal impact?
CNBC-AWAAZ goes beyond headline reaction. We translate policy into portfolio impact — sector by sector, stock by stock.
On trade agreements, our focus is on:
-Earnings visibility
-Export competitiveness
-Currency implications
-Margin sustainability
We don’t treat trade deals as political milestones. We decode them as profit-and-loss events for corporate India and map them to FY earnings trajectories.
• Which sectors look like clear winners and laggards over the next 12–18 months?
The next 12–18 months favour sectors aligned with structural spending and supply-side strengthening.
– Clear beneficiaries:
Capital goods and infrastructure
Manufacturing linked to export chains and PLI ecosystems
Power, defence, and logistics
– Relative laggards:
Consumption segments dependent on immediate demand revival
Businesses facing margin pressure from global volatility or pricing power erosion
This is not a momentum-driven market environment. It is execution-driven. Balance-sheet strength and order visibility will matter more than narrative.
• One headline to sum up this Budget 2026 for India Inc?
“Steady Hands, Long-Term Vision: A Budget That Rewards Discipline Over Drama”.
• What editorial filters do you apply before calling something ‘market-positive’ or ‘negative’?
We apply three structured filters:
– First: Earnings translation — does this materially change earnings visibility or cash flow outlook?
– Second: Time horizon — is the impact immediate, cyclical, or structural?
– Third: Valuation context — good news priced in or not.
If a policy doesn’t move earnings or risk perception, we don’t oversell it.
• How has business news consumption changed around big policy events?**
There has been a clear behavioural shift. They’re less interested in what was said, more in what it means for their money. There’s also a clear shift toward second-screen consumption, with digital platforms complementing live TV. The audience seeks sharper accountability. Viewers no longer accept broad optimism or pessimism — they want frameworks, numbers, and sector mapping.
• CNBC-AWAAZ decisively outperformed on Budget Day. What editorial and distribution choices mattered most?
Three deliberate strategic choices:
– Preparation depth:
We build scenarios months in advance — deficit ranges, sectoral incentives, tax calibrations — so we’re ready with analysis the moment numbers are announced.
– Language of impact:
We translate macro policy into investor-friendly Hindi without diluting complexity. That bridges accessibility and sophistication.
– Integrated distribution:
Television, YouTube, and digital platforms operate as one editorial grid, not parallel silos. This ensures continuity of narrative.We stayed analytical while others stayed reactive.
• How different is your YouTube audience from your TV audience?
The behavioural differences are subtle but important. TV audiences prioritise authority, structured debate, and context. YouTube audiences want speed, clarity, and actionable insights — often sharper, sometimes more opinionated. However, both share one expectation: accuracy. The format evolves; the trust benchmark does not.
• How do you retain viewers after the budget speech ends?
By shifting from announcements to implications.Retention comes from shifting the narrative from announcement to implication. We break down sectoral breakouts, stock-level impact, and what to do next. The speech is just the trigger; analysis is the destination.
• Is Budget Day your biggest traffic day?
It is one of the biggest — but more importantly, it is among the deepest in engagement. Viewers spend longer durations, revisit segments, and seek follow-up programming. That indicates behavioural trust, not just traffic.
• What’s the first thing you personally track on Budget Day — the speech or the markets?
The markets. They’re the fastest truth-teller. The speech explains intent; markets reveal interpretation.
• Your personal Budget-day ritual?
Early morning prep, minimal distractions, and once the speech begins, complete immersion. For me, Budget Day is less about reaction and more about reading between the lines.
• What drove your Budget-day ratings dominance, and how are Budget and trade deals shaping markets now?
Our dominance came from credibility, consistency, and clarity.
As for markets, both the Budget and recent trade deals are reinforcing a narrative of policy stability and global integration, which supports valuations even amid global volatility.
For Singhal, the market is the final judge. Policies can promise and speeches can persuade, but prices reveal what investors truly believe. As India’s investor class grows more informed and more demanding, business journalism is shifting from commentary to calibration. The premium is on clarity, context and credibility. In a landscape flooded with noise, the real edge lies in interpretation. In the end, the markets listen to numbers, not narratives , and Singhal’s craft is helping viewers tell the difference.
