The Indian Media and Entertainment Industry

The Media and Entertainment Industry of India is one of the fastest growing in the world, growing at a CAGR of percent from 2011-2016; and is expected to growat a CAGR of 13.9 percent to touch INR 2,41,940Crores by 2021 from INR 1,26,210 Crores in 2016. Film and television segments constitute almost 60% of the entire Industry and its key drivers.

Though demonetisation adversely impacted the Media and Entertainment sector's performance in 2016, especially advertising revenue, the impact was short lived and normalcy has returned. The long-term factors driving the future growth are expected to remain positive, with growing rural demand, increasing digital access and consumption, and the expected culmination of the digitisation process of television distribution over the next two or three years.

In the year 2001, the film industry was granted the status of an 'industry'. Since then,the GOI has taken several initiatives to liberalise the foreign policy regualtions relating to films. Through the liberalisation of the foreign exchange regualtions, the GOI has allowed 100 percent FDI in the film sector. Film entertainment companies are now listed on Indian and International stock markets and have attracted significant private equity and venture capital from accross the world.India's leading corporate houses like Reliance, Birla and Mahindra have also entered this sector. Reputable banks and financial institutions now provide funding and insurance services to the industry.

With close to 900 television channels, 183 million TV households, 299.24 million smartphone usersand 2,000 films produced annually, India's vibrant media and entertainment (M & E) industry provides attractive growth opportunities for global corporations. In recent years, with near double-digit annual growth and a fast-growing middle class, there has been a renewed surge in investments into the country by multionational companies.