In 2012, the size of the entertainment and media industry stood at Rs 96,500 crore, clocking a year-on-year growth of 20 per cent, according to the report jointly prepared by CII and consultancy firm PwC.
"This growth is driven by the introduction of cable TV digitisation, continued growth of regional media, continued strength of the filmed entertainment sector, fast increasing new media businesses and transparency," CII Director General Chandrajit Banerjee said.
Overall, the Indian E&M industry is on the cusp of a strong phase of growth, backed by rising consumer payments and advertising revenues across all sectors, the report said.
The report emphasises on innovation as the key for companies in the sector to achieve consistent growth. Indian E&M businesses, like their peers abroad, will need to raise their game in operational agility and customer insight, it said.
"Innovation should be seen as an important enabler to get closer to consumers and profitably deliver relevant content and services," Leader Entertainment & Media Practice at PwC India Smita Jha said.
Echoing similar sentiments, Banerjee said: "We believe that innovation - faster, better, more efficient, thinking out of the box (and within the box) - would be one of the game changers in this space".
The report titled 'India Entertainment & Media Outlook 2013' pegs the industry growth at a CAGR of 18 per cent in 2012-2017 and estimates it to touch Rs 2,24,500 crore by 2017.
Driven by digitisation, the country's television market grew at 13 per cent with revenues of Rs 38,300 crore in 2012.
Besides, the filmed entertainment sector also witnessed growth of 17 per cent in revenues at Rs 11,200 crore in 2012.
Meanwhile, the print sector is expected to clock a CAGR (compounded annual growth rate) in revenues of 9 per cent and touch Rs 33,100 crore in 2017.
Sectors such as internet access (30 per cent), internet advertising (29 per cent), gaming (19 per cent), and music (15 per cent) are expected to continue on their high growth trajectory, the report found.
The radio sector is also expected to receive a fillip with the successful conclusion of Phase III licence auctions and is expected to grow at a robust CAGR of about 16 per cent.
The rapid rise of internet usage, high penetration of smart phones, digital advertising, wireless broadband, digital content consumption, regulatory interventions have had a significant impact on the E&M sector, according to the report.
At present, television and print sectors dominate the E & M industry with contribution of 40 per cent and 22 per cent to its revenues respectively. Besides, internet access and films command 18 per cent and 12 per cent share of the industry's revenues.