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India's media and entertainment sector is no longer just about television and cinema. It has become one of the country's most active manufacturing and services ecosystems, spanning broadcast equipment, print production, film studio infrastructure, and digital content units. For entrepreneurs scanning business ideas with strong demand tailwinds, this sector offers a rare mix: cultural relevance, policy support, and genuine revenue growth.

The Media and Entertainment Business, when viewed through a manufacturing and infrastructure lens, includes satellite TV channel setup, newspaper and magazine printing plants, FM radio stations, film and animation studios, and packaged music production. Each of these sub-segments needs physical plant, machinery, technical manpower, and regulatory clearances — the same building blocks that define any industrial project.

India's M&E sector grew 9% in 2025 to reach ₹2.78 trillion, outpacing the country's nominal GDP per capita growth, according to the FICCI-EY M&E Report 2026 (industry association data). That kind of growth, sustained across advertising, live events and digital subscriptions, is what makes this a genuinely investable business idea today, not just a media story.

The sector already supports around 2.75 million direct jobs and over 10 million indirect roles, contributing close to 0.8% of India's GDP (FICCI-EY industry data). For entrepreneurs building manufacturing capacity around printing, broadcast equipment, or studio infrastructure, that employment base signals a mature, resilient customer and supplier network already in place across most major cities.

Why This Sector Deserves a Serious Look Now

Three forces are converging at once: rising ad spends, falling content production costs, and a policy push toward domestic manufacturing of media infrastructure. Together, they are reshaping who can enter this business and how quickly they can scale.

Digital advertising alone grew 26% in 2025 to ₹947 billion, accounting for 63% of total ad revenue (FICCI-EY industry data). That shift means smaller regional players — not just national broadcasters — can now build profitable, focused ventures around niche content, local-language print, or specialised studio services.

Export potential adds another layer. Indian content, especially films, music and animation and VFX services, is increasingly commissioned by international studios looking for cost-competitive, skilled production hubs. The government's enhanced incentive scheme for foreign film production, offering rebates of up to roughly US$3.6 million per project, is a direct signal that India wants to compete with Canada, the UK and Eastern Europe for this business (Ministry of Information and Broadcasting data).

Market Demand and Statistics: Who Is Buying and Why

Demand for media and entertainment output comes from four buyer groups: advertisers, subscribers, event organisers, and international content commissioners. Each is growing at a different pace, and understanding that mix matters before choosing a sub-segment to enter.

Television advertising fell over 10% in 2025 and pay-TV lost about 11 million homes, while Connected TV reached roughly 40 million weekly homes (industry association estimates). This confirms that demand is migrating from broadcast to hybrid and digital delivery, not disappearing altogether.

The filmed entertainment segment posted its best year on record in 2025, reaching about ₹205 billion, with over 1,900 releases and 37 films crossing the ₹100 crore mark at the box office (trade publication data). Music grew 10%, supported by streaming licensing and live performance revenue. Print stayed broadly flat, with advertising revenue up around 2% even as circulation continued its slow decline — a sign that niche and regional print still finds paying advertisers.

End users buying M&E output include FMCG and e-commerce brands (largest ad spenders), telecom and technology firms, event and hospitality companies, and government departments running public communication campaigns. Regional-language content is the fastest-growing demand pocket, as smartphone penetration deepens in tier-2 and tier-3 India.

Video consumption is also shifting the buyer mix. India's video audience touched about 572 million viewers in 2025, and social media users approached 500 million, according to FICCI-EY estimates. That scale gives smaller studios and regional publishers a genuine national reach through digital platforms, something that was out of reach for most independent producers a decade ago.

Government Policies, Incentives and Facilities

Central and state governments have both stepped up support for this sector, treating it as a genuine manufacturing and export opportunity rather than pure entertainment spending.

At the central level, the Ministry of Information and Broadcasting runs the Incentive Scheme for Production of Foreign Films in India through the India Cine Hub / Film Facilitation Office, offering rebates up to roughly US$3.6 million per eligible project (Ministry of I&B guidelines). The AVGC (Animation, Visual Effects, Gaming and Comics) Promotion Task Force, formed after the Union Budget 2022-23 announcement, is working toward a National AVGC-XR Mission under the broader Create in India vision (PIB, Government of India).

MSME entrepreneurs setting up smaller production, printing or studio units can access Udyam registration benefits, collateral-free loans under CGTMSE, and technology upgradation support that traces back to the CLCSS framework, all administered through the Ministry of MSME. Startup India registration adds tax holidays and easier compliance for new-age content and gaming ventures.

State governments have joined in too. Maharashtra approved its AVGC-XR Policy 2025 with a financial outlay of about ₹3,268 crore and a roadmap extending to 2050, aimed at building production clusters and skilling infrastructure (Government of Maharashtra policy document). Karnataka's AVGC-XR Policy 2024-29 similarly focuses on incubation and global market readiness. Export-oriented producers can also draw on RoDTEP-linked duty remission where applicable to equipment and physical media exports.

Market Growth and Industry Outlook

The FICCI-EY M&E Report 2026 projects the sector will reach ₹3.3 trillion by 2028, implying a CAGR of over 7% from the 2025 base (industry association projection). Digital media, live events, filmed entertainment, and animation and VFX are flagged as the primary growth engines through that period.

New media is expected to cross 50% of total industry revenue by 2028, a structural shift that rewards entrepreneurs who build digital-first capacity now rather than retrofitting legacy broadcast or print operations later. Growth drivers include rising smartphone and Connected TV penetration, wider 5G rollout, and continued appetite for regional-language and experiential content.

Investor sentiment backs this up. Public market transactions made up around 35% of total M&E deal value in 2025, reflecting growing confidence in scalable, technology-driven media businesses rather than one-off content bets (FICCI-EY deal data). That capital availability makes it easier for well-planned new ventures to raise growth funding once they clear the early feasibility stage.

Year-Wise Market Data: 2021 to 2035

The table below tracks India's M&E sector size against recent historical data, with post-2028 figures presented as a straight-line assumption based on a sustained 7% CAGR — the same rate FICCI-EY uses through 2028. Actual growth beyond 2028 will depend on digital adoption, regulatory shifts and global economic conditions, so treat those later years strictly as a planning assumption, not a forecast.

Market Forecast to 2035

Projecting a 7% compound annual growth rate from the FICCI-EY 2028 estimate of ₹3.3 trillion, India's media and entertainment sector could reach approximately ₹5.3 trillion by 2035 (industry estimate, assumption-based). This is not an official forecast; it is a reasonable extrapolation using the same growth rate the industry's own report applies through 2028.

Even a more conservative 5% CAGR scenario would still put the sector above ₹4.6 trillion by 2035, underlining that the downside case remains a growing market. For a new entrant, the practical takeaway is that demand for content, distribution infrastructure and production services is unlikely to shrink meaningfully over the next decade, even accounting for cyclical ad-spend slowdowns.

Import-Export Opportunity Analysis

India's trade position in media and entertainment is shifting from being a services exporter with limited manufacturing depth to also becoming a preferred hub for physical and post-production infrastructure. Broadcast and studio equipment, cameras, editing hardware and specialised printing machinery remain significantly import-dependent, creating an opening for domestic component manufacturing and assembly.

On the export side, India's growing acceptance as a cost-competitive shooting and post-production destination is the clearest opportunity. The enhanced foreign film incentive scheme and bilateral audio-visual co-production agreements are drawing international productions, animation outsourcing and VFX contracts (Ministry of I&B data). Music licensing exports and OTT content sales to diaspora and international markets add a second, steadily growing revenue stream.

India's animation, VFX and post-production exports have grown at a double-digit pace over the past three years, an industry estimate that reflects rising global studio outsourcing to Indian facilities.

Major Indian Players in the Sector

The table below profiles established Indian companies across broadcasting, cinema, print, and music — useful benchmarks for new entrants studying scale, specialisation and regional focus.

Future Growth Potential and Reasons to Consider This Sector

Regional-language content, live events, and AVGC-XR services stand out as the three fastest-growing pockets for new entrants over the next five years. Each needs relatively modest starting capital compared with legacy broadcast infrastructure, making them accessible entry points for MSME-scale investors.

Government policy is actively de-risking entry, from state-level AVGC-XR incentives to central film production rebates. Combined with rising advertiser budgets and a young, digitally engaged population, the sector offers a genuine multi-year runway rather than a short-term spike.

Cost and Investment Data

Investment needs vary sharply by sub-segment. The figures below are industry-estimate ranges for setting up common M&E business formats in India, meant as planning benchmarks rather than final quotations.

Frequently Asked Questions

What is the minimum investment to start a media business in India?

A small content studio, podcast unit or regional print operation can start with ₹10 lakh to ₹50 lakh, while broadcast or multiplex projects need several crore rupees in plant and equipment.

Do I need a licence to start an FM radio station?

Yes. FM broadcasting requires a licence from the Ministry of Information and Broadcasting under the applicable phase of the FM radio policy, along with security clearances.

Which government scheme helps MSME entrepreneurs in this sector?

CGTMSE-backed collateral-free loans, Udyam registration benefits, and Startup India tax incentives are the most commonly used support schemes for smaller production and print ventures.

Is the animation and VFX segment a good entry point for new entrepreneurs?

Yes. It needs lower physical infrastructure than broadcast or print, benefits from state-level AVGC-XR policies, and taps directly into growing international outsourcing demand.

How is digital media affecting traditional TV and print businesses?

Digital media has overtaken television as the largest revenue segment, so most new entrants are advised to build digital distribution alongside any traditional format from the outset.

What returns can a new entrant realistically expect?

Returns vary widely by format and execution quality; feasibility studies for specific formats such as broadcasting or print typically model project-specific rate-of-return and break-even figures before investment.

The Bottom Line

India's media and entertainment sector has moved past its slow years and is now growing faster than the broader economy, with digital, live events and film leading the way. For entrepreneurs looking at manufacturing and business ideas with real staying power, this sector offers multiple entry points, from small print and studio units to larger broadcast and multiplex projects.

The opportunity is strongest for those who pick one format, build it well, and use the available government incentives to keep early-stage risk manageable. With policy support widening and demand shifting decisively toward digital and regional content, now is a practical time to evaluate a project report and feasibility study before committing capital.