India

Economy Fosters Media Boom

India's expanding media have been catapulted by its growing economy, the world's fourth largest after United States, China, and Japan defined in terms of gross domestic product at purchasing power parity per capita.

Despite impressive gains steered by sweeping economic reforms (and some deregulation) since 1991 and by growing international investment, there is a wide chasm between the rich and poor. For instance, in 2007, every fourth Indian lived below the poverty line even as India was home to 36 billionaires (defining assets in U.S. dollars). India faces other problems such as overpopulation, environmental degradation, government and business corruption, an extensive underground black market economy, ethnic conflict, religious riots, terrorism, and neglect of children. These problems have long been a staple of news coverage in India.

A vibrant economy has reinvigorated Indian media with increased advertising spending, rising international investment, growing income levels, and a surge in consumer spending. India's newspaper market is among the largest in the world. More than 150 million people read a newspaper in India every day compared to 97 million Americans and 48 million Germans.

In 2002, the Indian government eased a 1955 ban on foreign investment in magazines and newspapers. By 2008, it had approved 15 foreign investment bids for news and current affairs media besides approving publication of international newspaper facsimile editions. As newspaper readership stagnates in the United States and Europe, global companies such as the U.S.-based Blackstone Group; Britain's Pearson, publisher of the Financial Times; and Britain's Associated Newspapers, have invested in Indian media. Newspaper circulation in India has been growing and advertising increased by 15 percent in 2007. Such double-digit growth rates are projected to continue until 2014. India's print media recorded a growth of 16 percent over 2007, at nearly $2.9 billion and estimated to double in size by 2012.

In 2005, the Indian government relaxed restrictions and has since approved 189 Indian editions of foreign specialty, technical, and scientific magazines. Such opportunities have attracted prominent global magazine publishers including Condé Nast (Vogue and GQ), Time (People), Meredith Corporation (Child), Dennis Publishing (Maxim), Rodale (Prevention), and Axel Springer (Autobild). Indian editions have enabled publishers to target the Indian market with indigenized innovations and online features, helped readers subscribe to international magazines at affordable prices, and opened new avenues for advertisers. With a 17 percent growth in 2008, the Indian media and entertainment industry has emerged as among the fastest growing sectors of the Indian economy. The entertainment and media industry grew cumulatively at 19 percent over 2005–08 to an estimated size of $10.9 billion. While the advertising industry increased by 22 percent in 2007, online advertising [Page 749]was up nearly 70 percent in that year. The entertainment segment of the animation, gaming, and visual effects industry grew by 24 percent at nearly $3.2 billion in 2007.

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