Industry expects 10% rise in ad spends in H1FY26

WHILE THERE WERE no direct incentives in the Budget for the advertising and media industry in terms of GST relief or easing the content creation process, the industry is expecting a 10% increase in the overall ad expenditure in the first half of FY26, thanks to the expected surge in discretionary spending.

- ALOKANANDA CHAKRABORTY

Indeed, this Budget creates a perfect mix of opportunities for the estimated ₹1.2-lakh-crore (2024) advertising industry in the form of a consumer base with enhanced purchasing power and expanded digital reach into rural markets through enhanced connectivity.

"The growth of the media and entertainment sector is closely tied to government reforms that enhance disposable income, public expenditure, and rural economic empowerment," said Chandrashekhar Mantha, partner, media & entertainment sector leader, Deloitte India.

"With an effective tax rate of nil on personal income up to ₹12 lakh, both urban and rural consumption trends are expected to improve."

This could translate to approximately 15-20% more disposable income for the middle class, directly impacting discretionary spending on brands and services.