Indian Media and Entertainment Sector Poised for Significant Growth by 2027

The Indian Media and Entertainment industry, driven by digital expansion, is set to grow at a 7% CAGR and reach Rs 3.07 trillion by 2027. While traditional media faces decline, AI could boost revenues significantly. The sector employs 2.8 million people directly with immense growth in digital segments.

The Indian media and entertainment (M&E) industry is projected to experience a significant growth, achieving a Compound Annual Growth Rate (CAGR) of 7% to reach Rs 3.07 trillion (USD 36.1 billion) by 2027, as indicated by a report from Ernst & Young (EY). The forecast also suggests a growth rate of 7.2% in 2025, with the sector hitting Rs 2.68 trillion (USD 31.6 billion).

In 2024, India's M&E sector continued its growth trajectory, escalating by Rs 81 billion to a total valuation of Rs 2.5 trillion (approximately USD 29.4 billion). This ascent was predominantly fueled by new media formats, including digital media and online gaming, which surged by Rs 113 billion, a remarkable 12% increase, comprising 41% of the sector's total revenues. Conversely, traditional media such as television, print, radio, and music saw a collective revenue decline of 3%, or Rs 30 billion, reducing their share to 41% of the overall sector. However, outside-the-home media, encompassing filmed entertainment, live events, and out-of-home advertising, grew by 3%, accounting for 14% of the sector's revenues. By 2024, the sector was 30% above its pre-pandemic peak in 2019.

The report underscores the potential for adopting Artificial Intelligence (AI) to elevate revenues by 10% and cut costs by 15% for M&E companies. Indian enterprises are increasingly utilizing GenAI tools to enhance creativity, optimize campaigns, improve content performance, and engage audiences. The sector currently provides direct employment to 2.8 million individuals, with approximately 10 million indirect jobs emerging, particularly in events, music, and content production domains. Online gaming and digital sectors are marked as the fastest-growing segments for direct employment prospects, according to EY.

(With inputs from agencies.)