‘Economic growth that the Budget will fuel will lead to good growth for M&E industry’

The media and entertainment industry wants holistic economic growth to boost consumer sentiments, and Finance Minister Nirmala Sitharaman’s 2021 Union Budget has done just that. While there were not many sector-specific announcements, the overall Budget brought a cheer to the M&E industry.

According to Ashish Bhasin, CEO-APAC and Chairman-India, dentsu, this is a great Budget for the economy as well as for the advertising industry. “It is clearly a growth-oriented Budget and I am particularly enthused about the investments in infrastructure and health. What is also good is that the taxes have not been raised and the process of taxation has been attempted to be simplified. Disinvestments and borrowings have been proposed as the preferred funding route, rather than increased taxation, which is helpful,” he said.

“Whenever the economy does well, the advertising industry benefits. Hence, I feel this economic growth that the Budget fuels will result in good growth for the advertising industry this year, and we should be positive and bullish, both about India’s economic future as well as for the advertising industry,” he added.

However like most others, Bhasin is looking forward to seeing the fineprint. “The important thing is that the ideas presented must result in smooth on-ground implementation, where our track record has not been that great in the past,” he said.

Anupriya Acharya, South Asia CEO, Publicis Groupe, was also all praises about the Budget.

“Budget 2021 is very pro-development, pro-transportation. With the vision of ‘Aatmanirbhar Bharat’, it has focus on good governance and women empowerment. And combined with the enhanced spending on the health sector, it should not only help in economic recovery but also drive strong growth agenda. Such an increase in capital expenditure even after the economic crisis due to the pandemic, the contraction in economy, bleak global outlook etc must definitely be appreciated,” she said.

“Other areas that are much appreciated is an effort to boost India’s automobile sector.  The Union government’s decision to introduce a voluntary vehicle scrappage policy and a scheme to augment public transport system will really help the auto sector, which has been witnessing a sharp slowdown in sales since 2019. Also the government’s facilitation in setting up ‘world-class’ fintech hub will help bring together new technologies like big data, AI and blockchain to transform the way that financial services are delivered, making them cheaper, more efficient, more convenient and more inclusive,” she added.

Multiple measures to incentivise start-ups like 100 per cent tax exemption for three years, amendment of Companies Act to allow new start-ups to register in one day, allowing NRIs to invest through OPC (One Person Company) etc to open up opportunities in the area of health, hygiene, water, clean air, sanitation, etc are some of the other developments Acharya appreciates.

No increase in taxation is also another big relief for the M&E industry, she said.

“Yes there is no material allocation made to the entertainment industry that was severely affected by the pandemic and lockdowns - with theatres shut down and an halt on productions of films and TV- but from an overall advertising and marketing perspective, a Budget that drives growth and hence puts money in the hand of end consumer, will also benefit media and entertainment. So hoping for the best. Now all eyes are on execution which is as critical for success, as the plan,” she added.

Commenting on the ninth Union Budget under the Narendra Modi government, K. Madhavan, President of the Indian Broadcasting Foundation, said, “This is a growth-oriented Budget that will provide a strong and much-needed impetus to the economic growth engines in the wake of the pandemic. The focus on privatisation and providing support for start-ups and innovation is likely to benefit the overall corporate sector and in-turn help the media and entertainment industry, as it will lead to strong advertising growth. I believe this Budget can pave the way for the resurgence of economic growth in a significant and impactful manner.”

Avinash Pandey, CEO, ABP Network, too hailed the Budget for its focus on privatization and support for start-ups.

“Budget 2021 has presented numerous positives to revive the economy in the wake of the pandemic. While there are no sops or relief for the M&E industry, one of the worst affected sectors due to Covid-19, the Budget’s focus on privatization and support for start-ups & innovations bode well with the overall growth of the corporate sector and is also likely to augment advertising. Not to forget, AdEx is the bellwether of economic growth and consumer sentiment, therefore, growth in the advertising sector will help the media industry expedite business recovery,” he opined.

Coming to print, Indian Newspaper Society president L. Adimoolam congratulated the Finance Minister for having presented a promising Budget to put India back on track. “The Finance Minister has set up a huge outlay for agriculture, infrastructure projects, and disinvestment of PSUs. With infusion of funds to banks, extending minimum wages for all types of workers, radical changes in direct taxation etc, money circulation can be expected in the market,” he said.

Like most other media players even radio leaders thought that the 2021 Union Budget would start the new financial year on a positive note. Prashant Panday, MD & CEO, Mirchi said, “As far as the media industry is concerned, there is not much that directly affects it, although overall growth and job creation should lead to a recovery in fortunes. In all, we see the FY22 Budget as a good beginning of the recovery efforts by the government even though a lot will need to be done in the coming years.”