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India's M&E Sector Poised for Export Boom

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  Published in Media and Entertainment on Thursday, January 29th 2026 at 12:12 GMT by Fortune India
      Locales: Maharashtra, Delhi, INDIA

New Delhi, January 29th, 2026 - India's media and entertainment (M&E) sector is undergoing a dramatic transformation, evolving from a largely domestic industry into a significant driver of services exports, according to the latest Economic Survey released today. The report highlights the sector's impressive resilience and points to a future where Bollywood isn't just synonymous with Indian cinema, but with a burgeoning export economy fueled by digital content, gaming, animation, and visual effects.

The Economic Survey 2026 paints a picture of an M&E sector that has not only weathered recent global economic uncertainties but thrived. The rapid adoption of digital technologies and the subsequent surge in online content consumption - a trend accelerated by the pandemic - have been pivotal in this growth. The survey indicates a fundamental shift from traditional entertainment formats to digitally delivered content, opening up new revenue streams and export opportunities.

From Local Flavor to Global Appeal

For decades, Bollywood has been India's cultural ambassador, with its films and music enjoyed across the diaspora. However, the survey emphasizes that the sector's export potential extends far beyond traditional film. Regional film industries are also gaining traction internationally, demonstrating a broadening appeal for Indian storytelling. Simultaneously, India is establishing itself as a global hub for animation, VFX, and gaming - areas where its skilled workforce and cost-competitiveness are attracting significant international investment and outsourcing contracts.

"The industry is undergoing a remarkable transition," the Economic Survey notes. "India is uniquely positioned to become a major exporter of M&E services, and capitalizing on this opportunity requires a strategic focus on infrastructure, skill development, and intellectual property protection."

Key Engines of Growth

Several factors are driving this expansion:

• The Rise of OTT: Over-The-Top (OTT) streaming platforms have revolutionized content distribution, providing direct access to consumers and fostering a vibrant ecosystem for content creators. This has lowered barriers to entry and enabled the production of a diverse range of content catering to both domestic and international audiences.
• The Gaming Revolution: India's gaming industry is booming, with mobile gaming leading the charge. The sector is attracting significant investment, creating jobs, and generating substantial revenue. The survey points to the potential for India to become a major gaming hub, developing both indigenous games and providing outsourcing services to global gaming companies.
• Animation & VFX Expertise: Indian animation and VFX studios are gaining a reputation for high-quality work at competitive prices. This has resulted in a steady increase in outsourced projects from major international film and television productions. The survey suggests this trend will continue, with India poised to capture a larger share of the global VFX market.

Addressing the Challenges

Despite its promising outlook, the Economic Survey acknowledges several challenges that need to be addressed to unlock the sector's full potential.

• Infrastructure Bottlenecks: The report stresses the importance of robust digital infrastructure, particularly broadband connectivity, to support content creation, distribution, and consumption. Expanding internet access to rural areas is seen as a critical priority.
• Skills Gap: A shortage of skilled professionals in specialized areas like animation, VFX, gaming development, and digital content creation is a major constraint. The survey calls for increased investment in vocational training programs and closer collaboration between educational institutions and industry players.
• IP Protection Concerns: Protecting intellectual property rights is essential to encourage innovation and attract investment. The survey urges for stricter enforcement of copyright laws and effective measures to combat piracy.

Policy Recommendations for a Brighter Future

The Economic Survey proposes a range of policy interventions to support the growth of the M&E sector:

• Export Promotion Incentives: Implementing dedicated export promotion schemes to incentivize M&E exports and facilitate access to international markets.
• Digital Infrastructure Investment: Prioritizing investments in broadband connectivity and the development of data centers.
• Skill Development Programs: Expanding vocational training programs, fostering industry-academia partnerships, and promoting reskilling initiatives to address the skills gap.
• Strengthened IP Enforcement: Enforcing copyright laws rigorously and implementing effective measures to combat piracy and protect intellectual property rights.

By addressing these challenges and implementing these policies, the Economic Survey 2026 confidently predicts that India's M&E sector will emerge as a major global services export powerhouse, contributing significantly to the nation's economic prosperity and job creation.