New Delhi, Aug 28 (IANS): The Union Cabinet on Wednesday approved 26 per cent foreign direct investment (FDI) in digital media with government approval.

Currently, 49 per cent FDI is provided under the approval route in news channels and the government has now decided to expand the span of FDI to the digital meda space.

"The extant FDI policy provides for 49 per cent FDI under approval route in up-linking of 'News & Current Affairs' TV channels. It has been decided to permit 26 per cent FDI under government route for uploading/streaming of news and current affairs through Digital Media, on the lines of print media," an official statement said.

The decision is expected give a boost to the booming digital media space in the country.

Commenting on the FDI approval, Jehil Thakkar, Partner, Deloitte India said: "FDI in digital media is a welcome development. Clarity around this fast-growing segment of the media industry will act as an enabler for capital infusion.

"Significant value will be unlocked in going forward," he added.

The Commerce and Industry Ministry statement further said that FDI is a major driver of economic growth and a source of non-debt finance for the economic development of the country.

"The government has put in place an investor-friendly policy on FDI, under which FDI up to 100 per cent is permitted on the automatic route in most sectors and activities. FDI policy provisions have been progressively liberalised across various sectors in recent years to make India an attractive investment destination," it said.