India's cabinet has approved a proposal by US media giant Disney to invest 10 billion rupees ($181 million) in the country, a government statement said on Thursday. Disney's proposal was cleared based on recommendations by the Foreign Investment Promotion Board, a press release from the Finance Ministry said.
The proposal was for "induction of foreign equity for inter alia expansion of the business and making downstream investment in other companies... including broadcasting companies," it said. Disney had announced in January it would take a controlling interest in India's leading television producer, UTV, and de-list the Indian media and entertainment group.
The company has been working to get a foothold for a number of years in India, which is one of the world's fastest-growing media and entertainment markets. It first began operations in the country in 2004 as Hollywood began looking to emerging markets such as India, China and Russia to boost growth. It has also moved into India's expanding cable and satellite television market through its children's outlets such as the Disney Channel and Hungama TV.
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