Policy paralysis could stall India’s Radio revival despite ₹3,853 cr FDI boost

The radio broadcasting industry in India has emerged as a surprise frontrunner in the media investment landscape for 2024, attracting ₹3,853 crore in Foreign Direct Investment (FDI) — its highest inflow since 2016. The figures, released in the Ministry of Information and Broadcasting’s Statistical Handbook on Media & Entertainment Sector 2024-25, mark a significant resurgence for the sector, which has been reinventing itself in a rapidly evolving audio ecosystem.

Overall, the Information & Broadcasting and Print Media sectors together secured ₹5,408 crore in FDI equity inflows in 2024, according to data published by the Department for Promotion of Industry and Internal Trade (DPIIT).

While the radio segment’s growth trajectory has turned heads, industry leaders are sounding the alarm on persistent structural challenges that could stifle future progress.

Sunil Kumaran, COO, BIG FM said, “The strong rebound in FDI can largely be attributed to the sector’s strategic pivot over the last few years. There’s been a significant shift from being just a radio broadcaster to becoming a holistic audio entertainment brand. The diversification into digital audio platforms, podcasts, on-ground events and influencer-driven content has opened new revenue streams and audience segments."

Kumaran noted, "What also worked in the industry's favour was its deep hyperlocal connect, especially in tier 2 and tier 3 markets, something brands are actively looking to tap into. The emergence of multi-platform content strategies, where brands engage with audiences across radio, digital and social, also played a key role. This combination of stable cash flows from traditional radio and new growth areas like digital and branded content created a compelling case for investors.”

Talking about challenges faced by the sector, Kumaran added, "Measurement remains a key issue and we need more robust and inclusive metrics that reflect true listenership across cities and formats. Distribution, especially in digital, needs better infrastructure support. There are also policy bottlenecks that need attention, streamlining licensing and enabling smoother transitions to newer formats like digital radio. Ad rate correction is another area of concern; radio still delivers high impact and the rates need to reflect that value more fairly.”

Read More: India’s I&B sector draws ₹5,408 cr FDI in 2024, Radio rebounds strongly

Another veteran from radio industry suggested, “Growth of radio industry depends on the pace of policy that the government adapts. The sustained momentum will require further policy support and innovation in distribution and management. It is important that the government rolls out policies in consultation with the stakeholders to make it more robust and to enhance growth of the sector.”

Ashit Kukian, Chief Executive Officer, Radio City said, “As we head into 2025, it’s clear the radio industry is standing at the cusp of a transformative era. The rollout of digital radio in 13 Indian cities is not just a tech upgrade but a chance to reimagine how we connect with listeners. With better sound quality, improved spectrum efficiency, and features like real-time traffic updates and visual content, digital radio opens up exciting new possibilities. That said analog radio still plays a vital role, especially across India’s cores. The future is about creating harmony between both.”

Kukian said, “One of the most exciting shifts is how AI and automation are helping us personalize listener experiences. From intelligent playlists to dynamic ad formats, the medium is using data to understand moods, moments, and preferences. And the industry results show—radio ad volumes per station jumped by 80% in 2024 over 2020, with an 18% rise in Q4 alone compared to Q2, according to TAM AdEx. That’s not just growth; it’s renewed confidence in radio’s potential.”

Despite the optimism, a senior radio executive cautioned that the pace of policy evolution will dictate the long-term trajectory of the sector. “Sustained momentum will depend on whether the government acts in consultation with stakeholders to address licensing, distribution, and digital migration concerns.”

In sum, while India's radio broadcasting sector is experiencing a revival powered by investor confidence and tech-driven innovation, the road ahead hinges on policy support, fair valuation, robust measurement frameworks, and infrastructure upgrades — without which the industry’s growth story may face static.

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