Rs 644 crore in FY25: Government ad spends underscore Print’s power

In the Union Budget 2024-25, the Government of India allocated Rs 1,089 crore for information and publicity

Even as digital platforms continue to command a growing share of public communication budgets, 2025 offered a clear counter-signal in favour of print. Over just 55 days, between September 4, 2025 and October 28, 2025, the Union government spent more than Rs 4.76 crore promoting the ‘GST Bachat Utsav’, an initiative aimed at boosting awareness of tax benefits. Information obtained under the Right to Information Act reveals that the entire expenditure was directed exclusively towards print media advertisements.

The campaign was not an isolated case. It reflected a broader resurgence of government advertising in print through 2025, positioning the medium as a preferred channel for large-scale, credibility-driven public messaging.

At a policy level, the intent remains visible. In FY25, government advertising in print stood at Rs 643.63 crore, reinforcing its continued relevance in the government’s media mix. In the Union Budget 2024-25, the Government of India allocated Rs 1,089 crore for information and publicity.

Backing this trend with data, Sivakumar Sundaram, CEO (Publishing), BCCL, points to measurable growth in recent months. “We have seen a significant growth in government spends for the April-December period in FY25-26, with a 10 percent increase in print spends over the same period last year. This proves that print continues to be an important vehicle for taking various schemes, policies and achievements by government bodies to the country at large,” he says.

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A structural reset in rates

The most consequential shift came in November 2025, when the government approved a 26 percent hike in DAVP or CBC print advertisement rates. Black-and-white ad rates per sq cm for one lakh circulation dailies were raised from Rs 47.40 to Rs 59.68, alongside enhanced premiums for colour advertisements, preferred positioning and special placements.

For publishers contending with sustained increases in newsprint, logistics and manpower costs, the rate revision offered long-awaited relief. More importantly, it reset the base economics of government advertising in print.

In its media release, the Ministry of Information and Broadcasting said the upward revision would provide essential revenue support to print media, help sustain quality journalism and support local news initiatives, while recognising print’s role in a diversified media ecosystem.

Not a spike, just the presses realigning

While the topline numbers look strong, industry leaders caution against reading 2025 as a one-way acceleration. Samudra Bhattacharya, CEO – Print, Hindustan Media Ventures, says the growth needs to be viewed in the context of a disrupted base year.

“On a financial reporting basis, the growth seen in FY26 over FY25 needs to be viewed in context. FY25 was impacted by the general election-led model code of conduct during Q1, which restricted government advertising. The subsequent uptick was therefore partly a normalisation rather than an anomaly,” Bhattacharya says.

As election-related restrictions ease, Bhattacharya expects government advertising to stabilise rather than surge further. “As government advertisements return to normal, we expect it to remain stable in the near term,” he adds.

That stability, however, now sits on a higher rate base, improving realisations even if volumes fluctuate.

Ballots, budgets and broadsheets

With multiple state elections lined up in 2026, government advertising is expected to remain an important, though uneven, contributor to print revenues.

Bhattacharya notes that election cycles often create a balancing effect. “While political parties increase spending in the run-up to elections, this is often accompanied by the imposition of the model code of conduct, resulting in a drop of DAVP volumes. Often it offsets each other,” he says.

From a national publisher’s perspective, Sundaram remains confident that elections will reinforce print’s position. “In 2026, with multiple state elections on the horizon, we are confident that print will remain a leading platform for reaching regional audiences and communicating policies and programs carried out on a national scale,” he says.

He adds that print’s combination of reach, credibility and legacy continues to make it uniquely suited for government communication. “The kind of reach and national impact print delivers, along with its legacy in writing the nation’s growth story, make it uniquely suited to communicate the nature, scale and effectiveness needed for government advertising.”

Regional momentum, national scale

Regional publishers are positioning themselves to benefit disproportionately from election-linked government advertising. Uday Jadhav, CEO, Sakal Media Group, believes the momentum seen in 2025 marks the start of a longer spending cycle rather than a one-off spike.

“The sharp uptick in government advertising witnessed in 2025 was not an anomaly but the beginning of a concentrated spending cycle that typically builds during and extends beyond election periods,” Jadhav says, pointing to municipal and local body elections in Maharashtra.

He also highlights the impact of the 26 percent CBC rate hike. “Even if advertisement volumes normalise, the overall value of government ad spends will remain meaningfully higher in 2026 compared to pre-hike levels,” he says.

However, Sundaram cautions against framing regional and national publications as competitors. “Regional and language publications are important components of the information chain in government advertising, but they work in tandem with national dailies rather than competing with them,” he says.

According to him, while regional papers deliver deep local penetration, national dailies amplify impact at an all-India level. “Many government communications are aimed at reaching different sections of society simultaneously, and language publications along with national dailies are usually taken together to cover the entire diversity of audiences,” he adds.

Can government ads cushion private sector softness?

Despite the renewed thrust on government advertising, publishers remain clear that it cannot replace private sector demand.

“Print continues to remain a preferred medium for advertisers due to its credibility, reach and impact,” Bhattacharya says. “Government advertising complements private spending rather than acting as a standalone substitute, even outside of election periods.”

Sundaram goes a step further, arguing that private sector print advertising is on its own growth trajectory. “Print spends among private sector companies are growing because of the narrative and creative possibilities of print. Government and private sector spends operate independently, and hence government spends have no bearing per se on private spends,” he says.

A tale of uneven markets

The national uptick does not play out uniformly across states. Kerala presents a more cautious picture. Anup Mathew, SVP, Mathrubhumi, says the state did not witness a comparable rise in 2025.

“In Kerala, we did not witness a similar uptick in government advertising in 2025 compared to 2024. In fact, on a year-on-year basis, spends were lower,” Mathew says, attributing this partly to CBC rates being extended only to select editions during the year.

While rates have now been revised across all editions, Mathew cautions that volumes will determine outcomes. “Sustaining momentum in 2026 will depend more on volumes than on rate revisions alone,” he says.

Setting the print run for 2026

Looking ahead, most publishers are budgeting for steady rather than outsized gains. Bhattacharya says print players broadly expect positive growth from government advertising, though projections vary by region.

Sakal is more bullish in election-heavy Maharashtra. “For FY26, we are budgeting for 10 to 12 percent growth in total advertising revenue, with government advertising contributing a disproportionately higher share,” Jadhav says. In such markets, Sakal is targeting up to 25 percent growth in government advertising alone.

Mathrubhumi, meanwhile, expects spends to track closer to 2024 levels in the near term, still implying double-digit growth over 2025, albeit punctuated by election-related pauses.

Fresh ink, cautious optimism in 2026

As 2026 unfolds, government advertising is unlikely to be the sole engine driving print’s revival. Yet campaigns such as the Rs 4.76-crore GST Bachat Utsav promotion and a structurally higher rate regime underline print’s continued importance for large-scale, credibility-led public communication.

With elections ahead, higher rates locked in and trust still firmly on its side, print enters 2026 with greater revenue visibility than it has had in recent years. Whether this momentum hardens into long-term growth will depend on volumes, execution and print’s ability to keep proving its relevance in an increasingly fragmented media ecosystem.