A stock market whose benchmark index posted returns of more than 40% for three years in a row, and steady economic growth that is gradually but surely trickling down to smaller towns and cities, are increasing the demand for business and financial news. Media houses that subscribe to this theory are going all out to fill news-stands and airwaves with offerings in a genre that, until recently has had sparse viewership and readership.
Illustration: Jayachandran / Mint
Leading Indian publishers and broadcasters are launching new business titles and channels, forging partnerships and hiring regional language journalists to take financial news beyond the metros, while players in new media are readying offerings on the Internet and mobile phones.
There are good reasons to do so. Of the 321 million Indians who have some kind of income, only 2.3% invest in mutual funds or equities, according to data from InvestIndia Economic Foundation, a Noida-based research organization.
The mean annual income of earning Indians between 18 and 59 years of age went up from Rs58,403 in 2004 to Rs71,850 in 2007, presumably resulting in higher disposable incomes. All of this points to a greater demand for news, information and advice on markets, savings instruments, insurance, real estate and commodities typically found in business media.
There are, however, concerns regarding seemingly hurried product roll-outs, especially for the regional markets. “What is the Hindi term for bull run, or put option?” asks Maheshwar Peri, publisher, The Outlook Group. “I’m not sure if these things have been adequately researched.”
Bennett, Coleman and Co. Ltd (BCCL) recently launched the Hindi version of The Economic Times, which according to the Indian Readership Survey (IRS) 2007 (Round 2), is India’s most read business daily with a readership of 19.86 lakh. Rival Business Standard Ltd has launched its flagship daily in Hindi and Gujarati. Deccan Chronicle Holdings Ltd announced an English business daily. Jagran Prakashan Ltd (JPL), the publishers of Dainik Jagran, India’s largest read daily, has joined hands with Network18 Media and Investments Ltd to publish a Hindi business daily. Amar Ujala Publications Ltd, the publisher of Hindi daily Amar Ujala, has said it also plans to launch a business paper.
All of them are betting on a spike in the readership of business and financial news. Currently, only 0.4% of the country reads any kind of business publication, according to the latest (September 2007) round of IRS, conducted by Media Readers Users Council, a non-profit entity.
This readership is served by about 10 national dailies and magazines. The new business publications will have to find converts among the 222 million Indians who read some publication. With titles embellished with words such as “profit” and “money”, they hope to convert middle-class aspirations into news-stand sales.