Budget 2025: Key Expectations for India's Thriving Marketing & Ad Sector

With India's marketing and advertising industry valued at over ₹70,000 crores and growing at an annual rate of 12-15%, stakeholders are eagerly anticipating policy measures in the upcoming Union Budget 2025 that can further fuel its expansion. Bhavesh Talreja, Founder and CEO of Globale Media, shares his insights on what the sector expects from the government, emphasizing the need for tax relief, innovation incentives, and digital infrastructure development.

"The marketing and advertising sector plays a crucial role in driving India's consumer economy. As we approach the Union Budget 2025, we hope to see policy changes that support its evolving business landscape and unlock its full potential," says Talreja.

Call for GST Reduction on Advertising Services
One of the primary concerns for the industry is the high Goods and Services Tax (GST) rate on advertising services, currently at 18%. Talreja suggests that lowering this rate—especially for digital advertising—could ease financial strain on brands and encourage more investment in marketing campaigns, particularly from small and medium enterprises (SMEs).

"With digital ad spend expected to account for over 45% of total advertising expenditure in 2025 (as per GroupM), reducing GST on digital platforms could significantly boost adoption and investment," he adds.

Incentivizing Innovation in AdTech
With rapid advancements in AI-driven personalization, programmatic advertising, and augmented reality experiences, Talreja advocates for policies that support innovation in adtech. He suggests expanding the scope of existing startup initiatives like the Startup India program to include emerging adtech companies, thereby facilitating research and development in the sector.

Government Spending on Public Awareness Campaigns
Historically, government-led initiatives such as Swachh Bharat and Digital India have contributed significantly to advertising revenues. Talreja stresses the importance of continued investment in public awareness campaigns, which not only provide business opportunities for agencies but also amplify important social messages.

Enhancing Digital Infrastructure & Data Privacy
The rollout of 5G across India presents a unique opportunity for brands to expand their reach, particularly in Tier II and Tier III cities. Talreja emphasizes the need for budget allocations that improve digital penetration and enable brands to tap into high-growth regional markets.

"Simultaneously, clear and business-friendly data privacy regulations aligned with global standards are essential to maintain consumer trust and enable ethical advertising," he adds.

Skill Development for the Future Workforce
The marketing industry is also calling for government-backed skill development initiatives, especially in areas such as AI, data analytics, and digital marketing. Talreja believes investing in training programs will ensure that India’s creative and marketing professionals remain globally competitive.

Final Thoughts
As the industry awaits the Budget 2025 announcement, Talreja remains optimistic that the government will recognize the marketing and advertising sector as a key driver of economic growth and innovation.

"By addressing these expectations, the government can not only support the sector’s immediate growth but also position India as a global leader in creative and digital advertising," he concludes.