With the Union Budget round the corner, policy makers are expected to be working out strategies with their maximum focus being on new-age sectors like Artificial Intelligence, semiconductors and deep technology.
In terms of traditional media sectors like print, radio and out-of-home advertising, however, expectations are far more fundamental.
Industry leaders say they are looking for structural policy corrections that can “arrest years of economic erosion rather than headline-led incentives”.
The stakes remain high. According to the Pitch Madison Advertising Report 2025, the Indian advertising market crossed the Rs 1 lakh crore milestone in 2024, with total AdEx pegged at around Rs 1,08,000 crore. Despite years of digital disruption, traditional media continues to command a sizeable share. Traditional AdEx, comprising television, print, radio and OOH, grew 6 per cent in 2024 to an estimated Rs 59,324 crore, underlining the sector’s continued relevance even as its share gradually declines.
Across legacy media, the consensus is clear. The next phase of sustainability will depend less on government spending and more on rationalising taxation, fixing pricing frameworks and easing access to capital.
The cost squeeze across print, radio and outdoor
For print publishers, the pressure point remains cost economics. Newspapers currently attract 5 per cent GST, comprising 2.5 per cent CGST and 2.5 per cent SGST, or 5 per cent IGST. Despite revisions under GST 2.0 that came into effect in late 2025, the tax rate on newsprint was left unchanged, with the government signalling its intent to continue supporting the media industry.
Publishers, however, argue that the relief is inadequate given rising newsprint prices, logistics costs and muted advertising growth. There is renewed momentum around either reducing GST further or zero-rating print publications, in line with books, to ease financial pressure and protect newsroom investments.
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The challenge is sharper for publishers operating both print and digital businesses. The CEO of a leading English daily, who oversees both verticals, said tax asymmetry has become a structural barrier to growth.
“Print is taxed at 5 per cent, while digital subscriptions attract 18 per cent. That asymmetry makes bundling extremely difficult. The moment customers see two different prices and tax structures, they start negotiating discounts, and the whole proposition breaks down,” the executive said.
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From a broader policy perspective, the CEO argued that knowledge products need a uniform taxation framework. “Books are zero-rated, but e-books and digital news are taxed at 18 per cent. Even within publishing, this inconsistency hurts adoption and growth. A uniform GST logic for knowledge products would significantly help the industry.”
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The Editorial Head of a leading Hindi media conglomerate, who did not wish to be named, called for complete removal of duty on newsprint. “The government has already reduced it from 10 per cent to 5 per cent, but even this 5 per cent is not making any meaningful impact for the industry. This duty should be removed altogether, including on both import and export of newsprint,” the executive said.
Radio broadcasters are also reviving long-pending demands ahead of the Budget, particularly around regulatory clarity and access. While the Telecommunications Act, 2023 introduced a new regulatory framework expected to shape the future of radio and broadcasting, industry experts say it overlooks a critical issue: the incorporation of FM radio into mobile handsets.
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This proposal, previously floated by the Ministry of Information and Broadcasting, is yet to be implemented. With over 650 million smartphone users in India, broadcasters believe mandatory FM connectivity in mobile phones could significantly expand radio’s reach, strengthen engagement with Gen Z and tap into a digitally native audience.
The Editorial Head of a Hindi media group also flagged regulatory delays on content permissions. “Permission to broadcast news on private FM radio has been pending for nearly two years now, and there is no clarity on why this bill continues to be held up,” the executive said.
Beyond news permissions, broadcasters continue to push for relief on copyright costs. “The issue of musicality remains unresolved. Musicality levels are still very high and should be reduced by at least half, as was decided by the Copyright Board a long time ago, but the government has continued to delay its implementation,” the executive added.
If these long-pending concerns around newsprint duty, FM radio news permissions, reduction in musicality and mandatory radio connectivity in mobile handsets are addressed, the executive said, it would provide genuine and long-term support to both print and radio.
When taxation shrinks the advertising pi
For the out-of-home sector, taxation remains the single biggest concern.
An OOH leader explained how the economics of the medium have steadily weakened over the past decade. “Earlier, agencies were getting Rs 88 for every Rs 100 a client spent. From 2016 onwards, that came down to Rs 85. On the fabrication or retail side, when a client spent Rs 100, around 5 per cent would go away, so agencies had Rs 95 to spend. Now, with everything coming under GST, that Rs 95 has turned into Rs 85.”
According to him, this has resulted in a structural contraction rather than just margin pressure. “If you think about it, the budget has actually shrunk. The pile itself has shrunk.”
While the government’s continued investment in infrastructure such as highways, airports and metro networks has aided outdoor visibility, the industry believes taxation is the only area where meaningful relief is possible. “The government does not really spend money in our business, and that is fine. It provides infrastructure, and there are no complaints there. The only place where we really need a push is taxation.”
Simplifying GST remains a key demand. “If IGST and CGST can be simplified, and if overall taxation can be lowered to 8, 10 or 12 per cent, it would give the industry a real boost,” the executive said. He also flagged foreign investment as another potential lever, calling for easier norms to attract global capital into Indian OOH businesses.
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Advertising policy, particularly government advertising, is another friction point, especially for digital news publishers.
The English daily CEO pointed out that while print government advertising rates have seen some correction, digital journalism continues to be deeply undervalued. “In digital, content creators who invest heavily in journalism are treated exactly the same as platforms with unlimited inventory. There is no differentiation or recognition of the cost of producing credible news.”
As a result, DAVP digital rates have fallen sharply over the past four to five years. “Rates have dropped by nearly 50 to 60 per cent, from around Rs 50 to 60 earlier to roughly Rs 25 now. Serious news publishers are forced to compete with players who can flood the market with inventory and destroy rates,” the executive said.
There is also a cautious but growing conversation around foreign investment in news media, particularly print. With advertising growth under pressure and operating costs rising, some industry leaders believe fresh capital could help sustain the sector and fund transformation.
“Given how badly print is struggling, there is a case to be made for allowing foreign investment into the news sector,” the CEO said, while acknowledging the sensitivity of the issue.
Taken together, the industry’s pre-budget wishlist is not about protectionism or subsidies, but correction. In a market where traditional media still accounts for over half of India’s advertising spends, a simpler tax regime, fair pricing of government advertising and easier access to capital could prove far more transformative than one-time fiscal stimuli.
For sectors that continue to play a central role in information dissemination and democratic discourse, Budget 2026 may be less about revival and more about whether policy finally aligns with the economics of credibility.