The media and entertainment (M&E) sector has become a significant component of India’s services economy, spanning audio-visual production, broadcasting, digital content, animation and gaming, advertising, and live entertainment, according to the Economic Survey 2026 that was tabled in Parliament on January 29.
The survey 2026 sees strong medium-term prospects for the M&E industry, driven by digital adoption.
In addition to digital adoption, content diversification, experiential consumption, expanding connectivity, and technological advances in Artificial Intelligence (AI), immersive media and virtual production are the drivers for the M&E space.
The Survey said that over the past decade, M&E has undergone a structural shift towards digital and platform-based delivery, reshaping revenue models, value chains and employment.
Industry estimates place the sector’s size at around Rs 2.5 trillion in 2024, driven by rising incomes, rapid internet penetration and a large domestic market.
Digital media emerged as the primary growth engine, contributing approximately one-third of the sector's total revenues, while also driving demand for content production, post-production, Visual Effects (VFX), dubbing, and localisation, all integrated into global distribution networks.
Segment-wise, audio-visual and film services remain central, with India among the world’s largest content producers, and revenues are increasingly driven by digital distribution. Video subscription revenues are estimated at Rs 9,200 crore in 2024.
Broadcasting and advertising have shifted decisively from linear TV to OTT and mobile platforms, with digital advertising growing faster than traditional formats. Highgrowth, export-oriented segments, such as animation and VFX, reached a revenue size of approximately Rs 103 billion in 2024, supported by skilled manpower and cost competitiveness.
The gaming segment, driven largely by mobile platforms and digital payments, expanded rapidly, with industry revenues estimated at around Rs 232 billion in 2024, supported by a large and growing user base, even as monetisation models continue to evolve.
Live entertainment also rebounded strongly post-pandemic crossing Rs 100 billion in 2024 and generating spillovers to tourism and urban services.
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