Revenue to Grow at 7% Annually Through 2027
New Delhi, February 16: India’s media and entertainment sector continues to chart a steady expansion path, with revenues projected to grow at around 7 per cent annually until 2027. The total industry size is expected to increase from ₹2,502 billion in 2024 to ₹3,067 billion in 2027, underscoring its position as a durable growth engine within the country’s services economy.The sector currently supports over 10 million livelihoods, both directly and indirectly, while generating annual output of nearly ₹3 lakh crore. This sustained growth reflects not only expanding consumption but also the deepening integration of creativity with technology and global distribution platforms.
Creativity Becomes a Strategic Economic Capability
The industry’s growth trajectory signals more than scale. It highlights the consolidation of creativity as a strategic national capability, linking economic expansion with global cultural influence in an increasingly platform-driven world.Animation, Visual Effects, Gaming, Comics, and Extended Reality, collectively referred to as AVGC-XR, are emerging as the most technology-intensive frontier of the creative economy. These segments are transforming artistic output into scalable intellectual property, enabling Indian creators to participate in global value chains.
AVGC-XR and Gaming at the Core of the Creative Economy
Gaming has evolved into a mainstream digital medium embedded in everyday life. Animation and visual effects continue to shape the visual grammar of global entertainment across films, streaming platforms, advertising, and immersive formats.Together, AVGC-XR and gaming are positioned at the heart of the next phase of the global creative economy. They combine technical expertise with storytelling capabilities, converting creative ideas into scalable digital products and experiences.
India’s animation, visual effects, comics, and XR ecosystem now operates as a globally connected production base. Indian teams contribute to international films, streaming content, advertising campaigns, and immersive experiences, functioning within tightly integrated global workflows. This reflects growing technical depth and rising creative confidence.
Gaming Market Expands Across Urban and Semi-Urban India
Gaming stands out as one of the most visible expressions of India’s digital transformation. Across metropolitan cities and smaller towns, millions log in daily to compete, collaborate, and build virtual environments. Mobile devices have become both entertainment hubs and social platforms, blurring the boundaries between interaction and leisure.This widespread participation has translated into structured market growth. India ranks among the world’s largest gaming markets, supported by a vast and highly engaged user base. Rising monetisation, expanding domestic studios, and stronger integration with global platforms are steadily transforming gaming from mass engagement into a scalable digital industry.
Creative Economy Gains Global Economic Significance
Globally, the creative sector contributes between 0.5 per cent and over 7 per cent of GDP in various countries. Live entertainment further drives economic spillovers across tourism and urban services.Within this global transformation, India’s creative economy is emerging as a major pillar of growth, employment, and value creation. With strong momentum across media, AVGC-XR, and gaming, the sector is positioning itself as a critical component of India’s long-term services-led growth story.
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