Industry views Union Budget as a catalyst for India’s digital-first content economy

The Union Budget 2026 has elicited a largely positive response across the media, entertainment, advertising and digital marketing ecosystem, with broadcasters, media agencies and digital-first firms viewing the proposals as a structural push rather than a short-term stimulus.

Leaders across television, streaming, ad-tech and content creation say the focus on digital infrastructure, AI capability, skilling and MSME competitiveness lays the groundwork for how content will be produced, distributed and monetised over the next decade.

Broadcast and content players back policy stability and IP creation

Setting the tone, Kevin Vaz, CEO – Entertainment, JioStar, said the Budget signals a clear policy direction toward a digitally enabled, scalable content economy. “The Union Budget reinforces India’s shift toward a digital-first content economy through investments in digital infrastructure, skilling, and innovation. For integrated media businesses spanning television, streaming, sports, and technology, sustained policy predictability, harmonised regulatory frameworks, and support for IP creation will be key to unlocking scale, and global competitiveness.”

Industry leaders say the government’s emphasis on digital infrastructure, AI capability, content creation, skilling and MSME competitiveness lays the groundwork for sustained growth across the services economy, while directly strengthening how content is produced, distributed and monetised.

From the broadcasting side, Punit Goenka, Chief Executive Officer, Z, said the broader macro and infrastructure focus could provide long-term stability for the sector. “The Government of India’s focus on boosting the services sector through economic stability, human capital development and a digital infrastructure push will be pivotal in driving sustainable economic growth in the long-term,” he said. Goenka added that strengthening the Orange Economy through investments in content, creativity, innovation and talent development, alongside content creator labs and emerging technologies, would “help unlock the value of high-potential segments across the Media & Entertainment ecosystem” and position the industry to “shape global narratives and amplify India’s cultural and creative superpower across the globe.”

Arghya Chakravarty, Chief Operating Officer, Shemaroo Entertainment Ltd, also welcomed the recognition of content and storytelling as economic drivers. “This Budget is a turning point for India’s creative economy,” he said. “The recognition that storytelling, digital content, and cultural expression are real engines of growth… gives the industry the confidence to dream bigger and invest in talent that can shine worldwide.”

At a policy level, allocations for the content and AVGC ecosystem were flagged as tangible steps. Rajiv Khattar, Broadcast Consultant, noted that “the budget has provided for boost to content creation by allocation of ₹35 crore to NFDC and ₹250 crore to the AVGC sector.” He added that support to the Indian Institute of Creative Technologies (IICT) in Mumbai to set up Animation, Visual Effects, Gaming and Comics (AVGC) content creator labs across 15,000 secondary schools and 500 colleges would “impart the required training to the youngsters,” while domestic data centres providing cloud services from India could lower costs for OTT and cloud-based programming.

Agencies see AI, data and digital infra as next growth engine

For media agencies, the Budget’s technology and semiconductor focus was seen as foundational to the next phase of marketing. Vivek Das, Chief Digital Officer, Madison Media, said, “Budget 2026 acts as the infrastructure layer for ‘Marketing 5.0’ in India. The aggressive push on the India Semiconductor Mission 2.0 and the democratization of AI across 500 universities fundamentally shifts us from being technology consumers to creators.”

He added that this “sovereign digital infrastructure promises richer data signals and far more robust attribution models,” and, combined with fiscal stability and the historic adex-to-GDP multiplier, could drive “strong double-digit growth for the industry.”

Digital marketing and independent agency leaders said the proposals align with the ongoing shift toward digital-first planning and performance-led strategies.

Shrenik Gandhi, Co-founder and CEO, White Rivers Media, said the Budget reflects trends already reshaping media strategy. “The focus is increasingly on digital-first platforms, which now shape how brands plan campaigns, allocate budgets, and measure results,” he said, noting that the shift from linear TV to OTT and mobile has prioritised “speed, scale, and measurable performance.” With gaming revenues estimated at ₹232 billion and OTT subscriptions crossing ₹9,200 crore, Gandhi added that VFX, localization and post-production are now “essential for engaging audiences across India’s diverse languages and cultures,” and that the ₹2.5 trillion media and entertainment market requires “always-on content ecosystems and long-term infrastructure partnerships instead of short-term, campaign-driven bursts.”

Ambika Sharma, Founder and Chief Strategist, Pulp Strategy, said the Budget delivered “confidence signals, not headline noise,” particularly through the ₹10,000 crore Champion SME Fund and AI-led capacity building. “AI was positioned correctly, not as a vanity innovation layer, but as an economic operating system,” she said, citing initiatives such as Bharat-VISTAAR and AVGC Content Creator Labs as long-term investments in skills and production. She also pointed to stronger data governance and tax incentives for foreign cloud providers using Indian data centres as measures that “enforce data sovereignty by design.” According to Sharma, the larger takeaway is a move “from campaigns to systems,” with growth driven by infrastructure, trust and repeatable capabilities.

The focus on data infrastructure also resonated with ad-tech specialists. Kartik Mehta, CBO and Head of Asia Channel Factory, said, “Instead of starting with AI models, the focus is on the heavy infrastructure that runs them, which is data centres.” Referring to the tax holiday for foreign companies using India-based facilities, he added that building stronger digital infrastructure is “a great step in the Digital India movement,” signalling a broader operational shift for companies.

Vaishal Dalal, Founder & CEO, Excellent Publicity, said: "When manufacturing scales, the immediate challenge is no longer production but demand creation. As more products enter the market, especially from non-metro regions, advertising becomes critical in educating consumers, building preference, and differentiating brands. This is where marketing shifts from visibility to demand-led, performance-driven communication."

Skilling and creator economy initiatives gain traction

Education-linked skilling initiatives were seen as particularly relevant for the next generation of creators.

Atul Hegde, Founder & MD, YAAP, said the acknowledgement of the AVGC ecosystem “reflects a deeper understanding of how India’s youth learn, create and participate in the digital economy.” By introducing AVGC Content Creator Labs in schools and colleges, he said, the government is recognising content creation and visual storytelling as “mainstream career pathways rather than side hustle,” helping convert informal passion into employable skills.

Yasin Hamidani, Director, Media Care Brand Solutions, connected MSME-focused measures directly to marketing demand. “This Budget delivers exactly what the advertising and marketing ecosystem needed at this stage: confidence, not noise,” he said. As MSMEs gain better access to capital and liquidity, he noted, they are more likely to invest in branding, content and customer acquisition. He added that improved digital infrastructure and AI integration would enable more precise, data-driven planning across Tier II, Tier III and rural markets, shifting the industry from campaign-led output to “system-led marketing capabilities.”

From the creator economy side, Anshita Kulshrestha, Founder & CEO Tuktuki Entertainments, said, “This budget sends a strong signal that India is ready to treat the creator economy as serious national infrastructure, not a side hustle.” She pointed to the focus on skilling through Content Creator Labs and social security for platform workers, adding that execution and clear monetisation frameworks will be key to ensuring India not only produces content for itself, but also exports culture to the world.

Dinakar Menon, Managing Partner and Business Head of BigTrunk Communications, said the Budget makes clear that “artificial intelligence is no longer a future tool but a present-day growth engine.” Increased funding for AI-powered, industry-linked labs in Tier II and Tier III institutions, he said, would widen the talent and innovation base and help build a marketing ecosystem that is “smarter, more export-ready, and globally competitive while remaining inclusive and future-facing.”

Taken together, the reactions from broadcasters, media agencies and digital marketers suggest the Budget is being viewed as a long-term capability play. With investments spanning AI, cloud infrastructure, skilling and the creative economy, the policy direction signals a shift toward building the systems and talent that will underpin India’s media, advertising and content industries in the years ahead.