The media and entertainment (M&E) sector is anticipating low-interest loans to digital media startups, including OTT platforms and online gaming ventures, and encouragement for cross-sector collaboration from the upcoming Union Budget 2025. The budget is expected to accelerate the development of emerging sectors like gaming, digital-first content creation, and interactive media.
Considered a key driver of India’s economic growth, job creation, and cultural influence, the M&E industry is expected to receive a strategic impetus.
According to a FICCI-EY report, the industry is projected to grow at a CAGR of 12% to reach Rs4.30 trillion by 2025.
Tax reforms and ease of regulations
One of the key expectations from the budget is the rationalisation of the Goods and Services Tax (GST) framework for digital services and streaming platforms.
Currently, OTT platforms face an 18% GST, which could be revisited to align with global standards, fostering greater consumer affordability and business expansion, shares Bhavesh Talreja, founder and CEO, Globale Media.
Additionally, lowering this rate, particularly for digital platforms and emerging mediums like connected TV (CTV), could significantly alleviate financial pressure on brands and encourage greater investment in campaigns.
CTV advertising in India is projected to grow by over 40% annually, driven by increasing smart TV penetration and affordable data prices.
“Offering tax incentives or reducing GST rates on CTV ad spends could accelerate adoption by brands and marketers, enabling them to leverage this high-engagement medium effectively,” he adds.
Furthermore, with India being the largest consumer of mobile data globally, incentives to enhance digital infrastructure, including 5G rollout subsidies and broadband penetration in rural areas, could be game-changers for content consumption and creation.
“Provide tax relief to startups and MSMEs working in advanced technologies such as AI, Generative AI, animation, VFX, and production technologies. This would reduce costs and encourage innovation in the content creation economy. Industry-wide incentives can help bring down production costs and speed up project timelines, boosting overall efficiency,” shares Chandrashekhar Mantha, Partner, Media & Entertainment Sector Leader, Deloitte India.
Additionally, simplifying regulatory frameworks and addressing challenges faced by media companies will provide a more conducive environment for innovation and expansion, say experts.
Boost to content ecosystem
For the media and entertainment sector, which has been a vital driver of cultural and economic influence, experts expect measures that can propel this sector toward greater global competitiveness, fostering creativity while ensuring sustainable growth.
“Increased investment in digital infrastructure and skill development will be crucial in empowering businesses to adapt to the rapidly evolving market landscape”, says Rutu Mody Kamdar, Founder of Jigsaw Brand Consultants.
The industry also believes that the introduction of tax incentives or deductions for investments in domestic content production can encourage regional and high-quality storytelling. This is especially crucial for small and medium-sized production houses.
“Content creators could receive support or subsidies for shooting at specific locations, increasing awareness and tourism at these destinations. This will promote India’s hidden gems by linking tourist incentives to content production,” adds Mantha.
Policies encouraging the establishment of state-of-the-art studios, post-production facilities, and animation/VFX hubs across India can position the country as a global content production powerhouse.
Additionally, the sector looks forward to increased government spending on public awareness campaigns and initiatives. Historically, government campaigns, including Swachh Bharat and Digital India, have been key drivers of ad revenue for agencies.
“A strong allocation to these programs in the budget would ensure sustained opportunities for agencies while amplifying the reach of vital social messages,” suggests Talreja.
Advancing D2M (Direct to Mobile) technology:
While the technology already exists, government support through tax incentives for the EMS (Electronic Manufacturing Services) sector could enable the production of mobile devices with integrated chips, making D2M a widespread reality, points out Mantha of Deloitte India.
Also, the government could also consider expanding the scope of the Production Linked Incentive (PLI) scheme to include sectors like animation, visual effects, gaming, and comics (AVGC), an industry expected to grow to Rs 180 billion by 2025, suggests Talreja.
Further, a strong focus on next-generation technologies, such as AI, quantum computing, and immersive media like VR and AR, will enable the sector to foster innovation, improve business efficiencies, and create globally competitive content, adds Ananay Jain, Director, Grant Thornton Bharat.
Infrastructure development and support for digital transformation
Support for building multiplexes and cinema halls in tier-II and III cities can expand market access and address gaps in entertainment infrastructure.
“Interest-free loans or subsidies for such projects can further boost local economies and entertainment access,” says Yasin Hamidani, Director, Media Care Brand Solutions.
Additionally, government grants or low-interest loans to digital media startups, including OTT platforms and online gaming ventures, can help India strengthen its global position in the digital M&E space.
Accelerating 5G implementation and reducing data costs will enhance streaming experiences and encourage digital consumption in rural and semi-urban areas.
Also, in light of the rapid advancements in technology, policies that incentivise innovation in adtech—such as AI-driven personalisition, programmatic advertising, and augmented reality experiences—would be highly beneficial.
Push for skill development
Lastly, skill development programs for creative professionals and marketers are critical, say the experts.
Allocating funds to initiatives that enhance the digital and technical skills of the workforce will ensure the sector remains competitive in the global market.
“Programs that train professionals in AI, data analytics, and creative storytelling could prepare the next generation of marketers to thrive in an increasingly tech-driven landscape,” suggests Talreja.