India's media sector remains marginal player in national economy decades after liberalisation

India's media and entertainment industry, despite significant expansion following the country's economic liberalisation in the early 1990s, remains a relatively modest contributor to the national economy. The sector's contribution has stayed below one per cent of GDP throughout the 35-year period since liberalisation opened the industry to greater private investment and competition.

The sluggish growth relative to GDP expansion suggests that while the media sector has experienced considerable internal development—including the proliferation of television channels, digital platforms, and content production—it has not scaled at rates comparable to other service industries in the Indian economy.

Industry analysts attribute the sector's continued marginalisation to various structural challenges, including fragmented revenue streams, regulatory constraints, and the dominance of advertising-dependent business models. The slow expansion of direct consumer spending on media content has further limited sectoral growth relative to the broader economy.

With India's digital transformation accelerating and streaming platforms gaining traction, sector stakeholders argue the industry is positioned for accelerated growth. However, realising this potential will require addressing longstanding issues related to content monetisation, infrastructure investment, and regulatory frameworks that have historically constrained media sector expansion.

The persistent underperformance of India's media and entertainment industry suggests significant untapped opportunity, even as the sector navigates evolving consumption patterns and technological disruption in the digital age.