New Delhi: India’s media and entertainment (M&E) industry crossed a landmark threshold in 2025, with digital media revenues exceeding ₹1 trillion for the first time, pushing total sector revenues to ₹2.78 lakh crore, a 9% jump over the previous year, according to the FICCI–EY report released here on Monday.
The data, interestingly, lands barely seven weeks after Finance Minister Nirmala Sitharaman stood up in Parliament on February 1 and gave formal recognition to what policymakers have been circling for years ‒ the creative economy, now branded under the term ‘orange economy,’ as a strategic growth engine for India. Monday’s numbers are, in effect, the first empirical validation of that bet.
The report, titled Stories, Scale and Impact: Unlocking India’s Media & Entertainment Economy, was launched at the FICCI Media and Entertainment conclave. It found that digital media has now overtaken television to become the single largest segment in the industry, a shift that analysts have been anticipating for several years.
“2025 emerged as a defining year for India’s Media & Entertainment industry, marking a new phase of scale, innovation and transformation. The digital segment crossing the ₹1 trillion mark is a highly encouraging milestone,” said Kevin Vaz, Chairman of the FICCI Media and Entertainment Committee, at the event. “It underscores the sector’s strong growth momentum, reflecting a fundamental shift in audience engagement, driven by the convergence of technology and storytelling,”
Advertising the big story Overall advertising revenue rose 13% to ₹1.5 trillion, outpacing India’s nominal GDP per-capita growth and contributing 0.41% to the country’s GDP. Digital advertising drove the surge, climbing 26% to ₹947 billion and accounting for 63% of all ad spending in the country.
Within that, e-commerce and point-of-sale advertising grew 50% to ₹220 billion ‒ a figure now equal to 85% of all linear television advertising revenues. More than one million small and medium enterprises (SMEs) contributed ₹363 billion to digital ad revenues, the report noted, reflecting how online advertising has moved well beyond large brands into the mass market.
“India’s M&E economy is increasingly defined by the interplay of stories, scale and impact,” said Anant Goenka, President, FICCI & Vice Chairman, RPG Group, at the event. “Unlocking this potential will depend on how effectively the industry aligns storytelling, distribution and sustainable monetisation.”
Television’s complicated year
TV continues to be the most widely watched medium in India, reaching around 745 million people every week, but its advertising revenues fell 10% in 2025, as a growing number of brands shifted budgets to digital platforms. The number of advertisers using linear TV declined 3%.
However, the rise of connected TV, internet-enabled large screens, has partially cushioned the blow. Connected TV units grew from 30 million in 2024 to 40 million in 2025, and when their advertising is counted alongside linear, total television ad revenues are roughly stable at ₹362 million.
The report describes India as an ‘AND’ market, one where television and digital coexist rather than displace each other. “Linear television is transitioning from a regulated utility to a dynamic, lifestyle-integrated ecosystem that complements digital growth, further reinforcing the ‘AND’ nature of screen consumption in the country,” the report said.
Box-office bounces back, live events surge
Filmed entertainment posted record revenues of ₹205 billion in 2025. Over 1,900 films were released during the year, with theatrical revenues growing 16%, largely on the back of higher ticket prices. Around 37 films crossed the ₹1-billion mark or more at the box office.
The Indian music sector also saw a strong 10% rise in overall revenue, signalling continued industry expansion. However, while digital licensing grew modestly by just 2%, significant gains were driven by increasing revenues from OTT platforms and social media channels.
Live events were the breakout performer of the year, with the organised segment growing 44%. The surge was driven by ticketed concerts, destination weddings, government-organised events, and large religious gatherings, which are a sign, according to industry experts, of rising consumer willingness to spend on in-person experiences.
Gaming takes a hit, radio struggles
Not all segments fared well. The video gaming industry contracted 17% following the government’s ban on money gaming, which came into effect in August 2025. In-app purchases within non-wagering games rose 15%, suggesting that players have adapted rather than walked away from the medium altogether. Radio revenues fell 7% to ₹23 billion, hit by declining ad rates. Non-advertising revenues now make up 25% of the segment, as stations diversify away from traditional commercial models.
Animation and VFX grew just 2%, with the sector still feeling the knock-on effects of the Hollywood writers’ and actors’ strikes, which led international studios to commission fewer films and series.
What comes next
FICCI and EY project the M&E sector will grow to ₹3.3 trillion by 2028, compounding at over 7% annually. Digital media is expected to account for more than half of all industry revenues by that year, driven by smartphone penetration, regional-language content, and continued connected TV growth.
Ashish Pherwani, Partner and Leader for Media and Entertainment at EY India, said the next phase of growth would be harder won. “The next phase will be defined by sustainable monetisation models, disciplined investment, and the ability of stakeholders to adapt to shifting consumer behaviour and regulatory realities,” he said.
Maharashtra’s Minister of IT and Cultural Affairs, Ashish Shelar, who addressed the launch event, said Mumbai would continue to lead the sector. “The world is increasingly recognising India not just as a large market but as a creative powerhouse and a trusted partner in content creation. The rising demand for Indian stories, talent, and production capabilities presents a defining moment for us to position India as a leading global hub for media and entertainment,” he said.
Segment performance at a glance
India’s media and entertainment (M&E) sector continued its strong expansion in 2025, growing 9% year-on-year to ₹2.78 trillion. This growth was driven primarily by digital media, advertising, and live experiences, even as select segments faced regulatory and cost pressures. The sector is projected to reach ₹3.3 trillion by 2028, growing at a CAGR of over 7%.
Segment
Growth
Key Highlight
Live Events
+44%
Ticketed concerts, weddings, and religious events
Digital Advertising
+26% to INR 947B
63% of total ad revenues
E-commerce & PoS Ads
+50% to INR 220B
85% of Linear TV ad revenues
Digital Subscriptions
+60% to INR 163B
216M paid video subscribers
Paid Music Subscriptions
+37% to 14.4M
Streaming platforms driving paid usage
Out-of-Home (OOH)
+13%
Digital OOH now 18% of segment (vs 7% in 2023)
Music (Overall)
+10%
Social media & OTT revenue growth
Film / Theatrical
+16% (theatrical)
Record INR 205B; 37 films crossed INR 1B
Print
+2% (ad revenue)
Resilient vs global declines; metro premiums
Animation & VFX
+2%
Hollywood strike impacted global supply
Radio
-7% to INR 23B
Reduced ad rates; non-ad = 25% of revenue
Linear TV Advertising
-10%
Sector shift to digital; stable with CTV
Video Games
-17%
Impact of money gaming ban (August 2025)