A recently conducted study by FICCI-PricewaterhouseCoopers has revealed that India’s Media & Entertainment (M&E) industry is set to touch the Rs.1 trillion-mark (US $22 bn). What is also amazing is that this growth curve has come about in just four years.

The study also showed that with a CAGR of 18 %, the industry, which currently hovers around Rs.437 bn (US $9.7 bn), is expected to outgrow the country's economic growth.

The study pointed out that the reason for this exceptional growth is the M&E industry’s income elasticity, wherein when income rises more resources are spent on leisure and entertainment than on necessities.

Other contributing factors are the positive measures taken by the government, technological advancements and entry of large corporate players into all segments of the industry.

Television will be the prime contributor which is expected to grow from the current Rs.191 bn to Rs.519 bn (US $ 4.2 bn to 11.5 bn) by 2011 (21-22%); followed by film entertainment (16 %), out-of-home advertising (17%) and live entertainment (16 %). While the fastest growth projectile in the industry will belong to Internet advertising (43 %), this will amount to just about Rs.9,500 crore from the current estimated Rs.1,600 crore(i.e. from US $ 355 mn to 2.1 bn).