India’s M&E Market Tops ₹2.78 Trillion, Eyes ₹3.3 Trillion by 2028 as Digital Ads Surge

Why It Matters

The scale of India’s M&E market—now the world’s third‑largest media economy—means that shifts in its structure reverberate globally. Advertisers worldwide are reallocating spend to Indian digital platforms, attracted by the country’s 500 million social‑media users and 572 million video viewers. The surge in AI‑focused skilling and citizen‑creator tools could also spawn a new generation of homegrown content that competes with foreign streaming giants, reshaping global content flows. Moreover, the rapid digitalisation of ad spend underscores the growing importance of data‑driven marketing in emerging economies. As Indian brands adopt performance‑based advertising, they generate vast datasets that can fuel AI models, creating a virtuous cycle of higher‑precision targeting and increased ad revenues. Policymakers and investors will watch how the government’s initiatives translate into measurable productivity gains and whether they can sustain the sector’s double‑digit growth.

Key Takeaways

• M&E sector grew 9% in 2025 to ₹2.78 trillion ($33.5 bn).
• Digital advertising rose 26% to ₹94,700 crore ($11.4 bn), now 63% of ad spend.
• Digital subscriptions jumped 60% to ₹16,300 crore ($2.0 bn).
• Government launched AI skilling for 15,000 youths and MyWAVES creator platform.
• Projected sector size of ₹3.3 trillion ($39.8 bn) by 2028, with digital media CAGR of 14%.

Pulse Analysis

India’s media landscape is undergoing a structural pivot from broadcast‑centric to digitally native. The 30% YoY growth in digital media, outpacing all other segments, signals that advertisers and consumers alike have embraced internet‑first consumption. This mirrors the trajectory seen in China and the United States a decade ago, where digital ad spend became the primary growth lever for the broader media ecosystem. The FICCI‑EY data suggest that the shift is not merely a temporary pandemic‑induced blip; it is anchored in sustained infrastructure upgrades—5G subscriptions up 39% to 395 million, broadband penetration crossing one billion, and smartphone ownership at 584 million.

The government’s AI skilling and MyWAVES platform could be a game‑changer if they succeed in lowering entry barriers for creators. By coupling skill development with a distribution outlet, India may nurture a domestic creator economy that rivals the output of Western platforms. This could also address the persistent monetisation gap in news, where only 4 million users pay for subscriptions despite a massive free‑content ecosystem. If AI tools enable more compelling, localized content, advertisers may find new premium inventory, further driving digital ad growth.

However, challenges remain. Television’s ad revenues are still contracting, and the online news sector saw a 9% decline in reach, hinting at audience fragmentation. Monetisation of music streaming continues to rely heavily on ad‑supported models, limiting subscription upside. The sector’s future will depend on how quickly advertisers can translate data insights into ROI and whether regulatory frameworks keep pace with AI‑driven content creation. In sum, the convergence of market momentum and policy support positions India’s M&E industry for a decade of accelerated digital growth, but execution risk will determine whether the projected ₹3.3 trillion valuation materialises.