Budget 2025: Tax relief, push for digital growth & content creation on M&E's wishlist

The Media and Entertainment sector plays a vital role in the nation's economy. Industry leaders are optimistic about its growth potential but stress the importance of supportive policies in the upcoming Union Budget. According to the FICCI-EY report, the sector grew by 8% in 2023, reaching Rs 2.3 trillion, and is projected to expand to Rs 3.1 trillion by 2026.

As the government prepares its fiscal policies, the M&E industry anticipates measures that will enhance digital infrastructure, incentivize content creation, and support the sector's diverse growth avenues. These initiatives would solidify India's position as a global leader in media and entertainment, feel industry leaders.

Here is what industry leaders of the M&E sector expect from the Union Budget 2025 which will be tabled on February 1:

Vinit Karnik, MD, GroupM

We hope for some relief for taxpayers like us, particularly the salaried class, who shoulder a significant tax burden. However, are there any signs of such relief? Unfortunately, it seems unlikely.

Lara Balsara Vajifdar, Executive Director, Madison World

I would hope that the budget has adequate measures to boost consumption in the economy by increasing the disposable income of citizens. Boosting consumption is the need of the hour for most businesses.

Ashish Sehgal, Chief Growth Officer, Zee Entertainment

As we approach Budget 2025, increasing domestic consumption is crucial for the M&E industry. The government can introduce key measures to accelerate this growth:

a) Tax reforms to enhance spending & advertising growth

Reducing personal income tax slabs increases disposable income, while rationalizing GST rates on essential goods makes products more affordable, driving consumption. Higher consumer spending encourages new market entrants, intensifying competition among FMCG brands and boosting ad spends as they strive to capture growing demand, expand their reach, and build strong consumer connect. Additionally, tax incentives for media services can make entertainment more accessible across traditional and digital platforms, unlocking new advertising opportunities.

b) Strengthening rural demand & market expansion

Government initiatives like higher MSPs for farmers, rural employment schemes (MGNREGA), and increased rural infrastructure investment significantly boost rural consumption. As rural demand rises, FMCG and e-commerce penetration grows, prompting brands to increase ad investments across TV, digital, and regional platforms.

c) Government infrastructure investments to stimulate consumption

Rebates, incentives, and Government infrastructure investments play a vital role in job creation, improved connectivity, and lower business costs—all of which increase domestic consumption. Better roads, urban expansion, and affordable housing drive demand across automobiles, real estate, consumer goods, and digital services, further accelerating media spending and advertising revenue.

By aligning economic policies with domestic consumption growth, the government can create a ripple effect, benefiting multiple industries—including M&E—through higher ad spend, increased content consumption, and stronger brand engagement.

Pradeep Dwivedi, Group CEO, Eros Media World 

The sector looks forward to better benefits pertaining to tax & incentives for domestic film productions at par with global standards, and funding structures for local content creation. Strengthening anti-piracy measures, investing in 5G and digital infrastructure, and boosting skill development in GenAI, VFX and Gaming are also crucial. GST reductions on cinema tickets and OTT subscriptions will help spur the industry’s revival. Additionally, incentives for green filmmaking, streamlined regulations, and policies to promote content exports can accelerate industry growth.

Anuja Trivedi, Chief Marketing Officer, Shemaroo Entertainment 

Consumer spending needs to go up, for which we need to put more income into the hands of the consumer. We are seeing that our economic growth rates are dropping, and consumer spending and income in their hands are going down. So definitely that would be a big ask.

The larger segment of our business is our broadcast channels, which rely entirely on advertising revenue—primarily from the FMCG sector. For us, increased consumer spending is crucial, as it drives brands to expand their marketing budgets. These factors remain our top priorities.

The second question is about the support provided to the media and entertainment industry. Are there any incentives or benefits that could ease the process of content creation? Costs have risen significantly, making production more challenging. What measures can be introduced to help mitigate these challenges?

The third question focuses on the growth of this sector and India's potential to benefit from it. Can we implement initiatives for AI training, workforce development, and animation? Given that India is already a major hub for back-end operations, how can we elevate our position in the value chain? Would it be possible to establish training centers and introduce tax incentives in the budget to support this growth?

Siddharth Dhabade, Chief Business Officer, Lemma Technologies

Consumption has declined, and a key way to address this would be through income tax reductions. Lowering income tax would increase disposable income, allowing people to spend more, which in turn would boost demand. The primary issue is the economic slowdown, and putting more money in people’s hands through tax relief could help stimulate consumer spending and drive overall demand.

Siddharth Kumar Tewary, Founder and Chief Creative, Swastik Productions

India’s media and entertainment industry is more than an economic sector—it’s a reflection of our soul. Budget 2025 must prioritize creators by reducing taxes, incentivizing cultural and historical content, and enabling deeper digital connectivity to take Indian stories to every home, urban and rural. Simplifying regulations and investing in cutting-edge technologies like VFX, AI, and sustainable production can position India as a global entertainment leader. This isn’t just about business—it’s about giving our stories the power to inspire, connect, and transform on a global scale.

Mautik Tolia, Managing Director, Bodhitree Multimedia Limited

We hope there is an increase in the allocation of funds corpus towards the international production subsidies being given by the Indian government. This has huge potential to attract more international movie and show production to India. 

Prasar Bharati’s WAVES is a stronger push for the OTT sector, as government-led initiatives focused on regional content, could create significant opportunities for emerging content creators across India while also stimulating regional economies. Additionally, reducing entertainment tax on film exhibitions would help drive higher footfalls in cinemas, attracting larger audiences and revitalizing the theatrical experience.

Russhabh R Thakkar, Founder and CEO, Frodoh 

The budget must directly incentivize advertising-driven growth by reducing GST on digital ad spends and offering structured tax relief for brands scaling their marketing investments. A targeted media credit program where verified businesses get government-backed ad grants could significantly boost digital adoption, especially in Tier 2 and 3 markets.

Investments in AI-driven measurement frameworks and CTV advertising infrastructure will make media spends more efficient, driving higher ROI. Additionally, allowing full input tax credit on ad expenditures will free up working capital, fueling reinvestment into marketing. Given the government’s digitisation agenda, expect a push for structured incentives in retail media, performance marketing, and AI-led ad tech, creating a more robust ecosystem for digital-first brands.