ECONOMIC FACTORS-

Foreign Investment-
In the earlier days most of the companies in print media dominated their local terrorists and didn't enter
new ones due to the lack of capital.

This scenario changed in 2003 when the FDI laws were relaxed by the goverment.

Today 26% FDI is allowed in the newspapers and other magazines which provide news and information
about current affairs. Although 100% FDI is allowed in the non-news print media.

Amount Invested

Domestic Company Investor (Rs. bn)

Independent
Jagran Prakashan News& Media 1.7

HT Media Public (IPO) 3.7

Jagran Prakashan Public (IPO) 3.3

Deccan Chronicle Public (IPO) 1.5

HT Media Henderson Henderson 1

Dainik Bhaskar Warburg Pincus 1.5

Amar Ujala DE Shaw 1.2

Ushodaya
Enterprises Blackstone 12
Source: Ficci PWC, companies

Inflation-
Growth of print media advertising and inflation rate have a positive relation.The reason behind this is
when inflation rate rises it leads to increase in purchases of an individual which in turn results in
corporates advertising more. The increase in advertising results in the growth of print media and hence
inflation rate affects print media positively.

On contrary when inflation rate decreases the purchases of individuals also decreases and corporates
prefer to advertise less frequently in these times.
The increase in disposable income-
In India, the extra cash of individuals is expanding year by year, buy control additionally get expanded.
Individuals are spending more cash step by step that lead promoter to expand and advertise more.Even
the 7th pay commission also increases the purchasing power of individual.

Increase in Newsprint Price-

The expense of creation of a newspaper is specifically connected to the expense of newsprint, which
changes with the business sector cost of newsprint, accessibility and area of printing offices and the
quantity of pages utilized. Newsprint costs for the most part record for just about 50-70% of aggregate
costs for a distributed business. Newsprint is an openly exchanged ware on the worldwide markets and
shows value unpredictability.

The Increase in Literacy Rate-

In 2006, the literacy levels expanded to 71.1% when contrasted with 69.9% in 2005. While rural literacy
is at 64.8%, urban literacy touched 85.3%. As of now Indian print media is assessed to reach more than
220 m individuals, and has massive development potential since near 370 m educated Indians are
accepted to not be served by any production. Likewise, the compass of daily papers is just 27%, when
contrasted with the worldwide normal of half.