Budget 2024 – Pass or Fail?: Reactions from M&E industry and media agencies

Find out what the leaders in the media and entertainment industry think of the Interim Budget presented by FM Nirmala Sitharaman.

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| February 2, 2024 , 10:39 am
Here’s what leaders in advertising and marketing thought about the inclusions in the Interim Budget.
Here’s what leaders in advertising and marketing thought about the inclusions in the Interim Budget.

FM Nirmala Sitharaman has announced the Interim Budget or the ‘Vote of Account’ for 2024 today. The Lok Sabha elections, which will be held between April and May, will see the newly elected government present the full budget for FY25. The government allocated Rs. 4,342.55 crore to the Ministry of Information and Broadcasting (MIB) for 2024-25. The figure is marginally lower than the Rs. 4,449.79 crore that was allocated in the previous fiscal year. Of the current allocation, Rs. 2,959.94 crore has been allocated to broadcasting. Rs. 1,088.16 crore has been allocated for Information and Publicity.

Here’s what leaders in advertising and marketing thought about the inclusions in the Interim Budget.

Punit Goenka, MD and CEO of ZEE Entertainment Enterprises Ltd., lauds the government’s economic reforms on Budget day.

“The Government’s efforts to boost India’s economy through structured policy reforms will accelerate the development of our nation over the next few years. The steps taken by the finance minister to empower the youth by fuelling the entrepreneurial spirit and fostering innovation in technology through initiatives like the 1 lakh crore research corpus, creates a golden era for sunrise sectors such as media and entertainment,” he said.

“The combination of youth and technology certainly holds immense potential and can lead to exciting new opportunities for content distribution and monetization, boosting the growth of the M&E sector at large,” Goenka added.

Goenka has been vocal about government initiatives. He even attended the grand Ram Mandir opening on January 22, 2024, the same day the $10 billion Zee-Sony faced termination.

On January 25, 2024, Goenka addressed Zee employees speaking about changing dynamics and opportunities in the media and entertainment space.

“Our industry is witnessing rapid changes, and these winds of change are giving us a new shape. We have to mould ourselves to be well-positioned in order to capitalise on the opportunities coming our way. We have been leaders over the last 3 decades and have delivered value to our stakeholders, year on year.We need to continue building on this momentum and fire on all cylinders,” he said.

Sam Balsara, Chairman, Madison World said, “This was a vote on account budget, so no major proposals were expected or being announced. However, in view of all the positive government actions taken in the last 10 years, I would expect that our consuming class which is already at 450 million should go to 800 million in the next 5 years. Those who take a cue from this and invest heavily in advertising over the next few years to strengthen their brands will reap huge benefits over the next 5 years.”

Harsha Razdan, CEO – South Asia, Dentsu said, “I’m pleased to see that the government’s budget priorities include simplifying processes through digital empowerment. While we await the full budget, the interim one signals a commitment to nurturing strategic long-term investments and inclusive growth. The investment focus towards Infrastructure, Start-ups, Tourism, Women Empowerment, and Green Energy should stimulate consumption, boosting the economy and advertising expenditure. The budget also heralds a promising era for companies leveraging AI and market technology to drive a technology-driven economy.”

“The focus on digital connectivity promises fresh avenues for innovation and expansion within the industry. The projected economic growth of 6-6.8% in the next fiscal year will continue to drive consumption and better advertising spending across diverse industries. However, the Industry was hoping for additional measures to boost rural consumption, and that could dampen advertising spends to an extent,” he added.

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