By Chandrashekhar Mantha, partner, media & entertainment sector leader, Deloitte India
M&E sector growth depends on the Government reforms that improve disposable income, government spending and empowerment of rural economy.
With Nil, effective tax rate for personal income upto 12 lakh, consumption trends in Urban and Rural will be positive. Further Capital investment of over INR 11 lakh crore, 2 lakh crore for rural employment and 10,000 crore under PM Dhan dhanya krishi yojna will be a contributing factors. Kisan credit card scheme now with increased limit of INR 5 lakh and Atmanirbharta in pulses as well as National Mission on High yielding seeds will empower the agriculture sector and impact rural spending.
The government’s investment in Deep Tech Funds to support next generation startups could benefit the sector related innovations. Proposed enhanced subsidies for regional content will boost the production economy.
The growth of the Media & Entertainment sector is closely tied to government reforms that enhance disposable income, public expenditure, and rural economic empowerment. With an effective tax rate of nil on personal income up to Rs 12 lakh, both urban and rural consumption trends are expected to improve.
Key contributing factors include a capital investment of over Rs 11 lakh crore, Rs 2 lakh crore allocated for rural employment, and Rs 10,000 crore under the PM Dhan Dhanya Krishi Yojana. Additionally, the expansion of the Kisan Credit Card scheme with an increased limit of Rs 5 lakh, along with initiatives like Atmanirbharta in pulses and the National Mission on High-Yielding Seeds, will strengthen the agricultural sector and boost rural spending.
The government’s investment in a Deep Tech Fund of Funds aims to support next-generation startups, fostering innovation within the sector. Proposed enhancements in subsidies for regional content will further stimulate the production economy. Furthermore, the Rs 500 crore allocation for Centers of Excellence in Artificial Intelligence is set to drive advancements in learning and skill development for industry.