India's M&E Sector: A Digital Powerhouse on the Rise By 2027, digital media is expected to grow to INR 1,107 billion, firmly securing its place at the heart of India's entertainment economy

India's media and entertainment sector is undergoing a remarkable transformation, driven by a perfect storm of digital expansion, artificial intelligence (AI), and a growing demand for regional content. In 2024, the industry crossed INR 2.5 trillion (USD 29.4 billion), contributing 0.73 per cent to the country's GDP. What's even more telling is that advertising still makes up just 0.38 per cent of GDP—pointing to an untapped opportunity, especially as digital formats take over, noted the EY report "A Studio Called India" in collaboration with the Ministry of Information & Broadcasting.

With over 562 million active smartphones, more than 900 million broadband connections, and 30 million connected TVs, digital entertainment in India isn't just thriving—it's booming. Additionally, Big Tech players such as Google, Meta, Amazon, and Microsoft are using India's mobile-first user base to test new digital experiences that blend payments, content, and emerging tech—Netflix even piloted its mobile-only plan in India before taking it global.

By 2027, digital media is expected to grow to INR 1,107 billion (USD 13 billion), firmly securing its place at the heart of India's entertainment economy.

But perhaps the most exciting shift is being driven by AI. From how stories are told to how they're monetised, AI is reshaping the creative landscape. Indian studios are rapidly adopting AI—not just as a back-end support system but as a front-line creative partner. AI is now helping teams produce videos, generate music, design visuals, and localise global content with unprecedented speed.

Shantanu Narayen, Chairman and CEO of Adobe, captured this shift well at the WAVES Summit 2025, saying, "Generative AI is enabling Indian creators to transcend traditional mediums… AI is not replacing creativity—it's amplifying it." He added that with more than 500 million Indians consuming online content—much of it in regional languages—India's creative potential is expanding rapidly.

This shift isn't just about tools; it's about changing how we work. Richard Kerris, Vice President at NVIDIA, noted how what once took teams of artists hours or even days to create can now be achieved with AI in minutes. Yet, he offered a gentle reminder: "Just because we all have a camera on our phone doesn't make us all great photographers." AI can empower, but the craft still matters. Vishal Dhupar, Managing Director of NVIDIA India, echoed this, saying, "Creative people live their work. AI doesn't replace that—it enables it."

Across Indian studios, this mindset is taking hold. India's creative economy is no longer just catching up—it's shaping global trends. As the M&E sector races toward INR 3.07 trillion (USD 36.1 billion) by 2027, the fusion of creativity and AI could very well become India's next big cultural export.