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New Delhi: Experts from the advertising fraternity believe that the Union Budget 2025 has the potential to reshape the advertising landscape.
Key changes include revised tax slabs and increased exemption limits, which will boost disposable income and drive higher consumer spending, creating more opportunities for brand marketing.
Additionally, the government’s focus on expanding infrastructure in Tier II and III cities will open up new regional markets, offering fresh growth prospects for advertisers.
Karan Khanna, Co-Founder and COO - Huella Services, said, “Budget 2025 introduces key economic shifts that will influence the advertising landscape. Three major changes stand out—first, the revised tax slabs and increased exemption limits will boost disposable income, leading to higher consumer spending and a greater push for brand marketing.
Second, the focus on expanding Tier II and III cities through infrastructure development will open up new regional markets for advertisers, creating fresh growth opportunities.
As brands navigate these changes, we expect a sharper focus on CTV, Programmatic, and AI-powered advertising to drive efficiency and engagement. While the budget does not directly address advertising, its economic impact will push brands to be more data-driven and ROI-focused in their marketing strategies.”
Expressing how access to capital will help MSMEs and small-scale agencies, Rakesh Hinduja, Managing Partner & Co-Founder, Wondrlab Network "Expanding access to capital for MSMEs and startups will unlock a new wave of innovation and digital transformation. With the allocation of more funds, India's creator economy and marketing-tech sectors stand to gain exponential momentum, driving industry growth by at least 2-3x in the next few years.
The capital infusion coupled with streamlined mergers will definitely accelerate consolidation while fueling acquisitions to strengthen the martech ecosystem—thereby positioning India as a global hub for tech-driven brand-building."
Excited about the government’s push for AI, Prasad Shejale, Founder and CEO at LS Digital, said, "The Union Budget’s forward-looking approach to Artificial Intelligence, with the establishment of a Center of Excellence (CoE) for AI, aligns with India’s vision of becoming a global digital powerhouse.
The push for AI-led innovation, coupled with initiatives to streamline global operations and taxation frameworks, will accelerate enterprise adoption of digital technologies, making India a key hub for advanced AI-driven solutions.”
The budget’s strong push towards digital infrastructure and technological innovation is a welcome move for the industry. Investments in AI Centers of Excellence, 5G application labs, and digital transformation initiatives will accelerate advancements in adtech, programmatic advertising, and data-driven marketing, according to Bhavesh Talreja, Founder and CEO, Globale Media.
“Furthermore, as the government prioritises key sectors like manufacturing, exports, and agriculture, we anticipate an uptick in sector-specific advertising and brand-building initiatives. The increased budget allocation for skill development programs could also benefit the marketing workforce by equipping professionals with the expertise needed for the evolving digital landscape,” he added.
Weighing in on the budget, Aditya Jangid, Managing Director, AdCounty Media, added, “The government's plan to develop a Deeptech Fund of Funds reflects a commitment to improving India's technological capacity. Moreover, the PM Research Fellowship Scheme, under which 10,000 fellowships will be provided, especially to IITs and the IISc, is a smart move to enhance the nature of research in India.
Committing to nurturing tech talent by offering scholarships over the next five years will foster a new generation of researchers and innovators. The combination of subsidising the fund for financial support and the fellowships for human capital advancement for the nation puts India in a strong position in the world technology market.”
While Jangid and Shejale appreciated the government’s push for new technologies, Yasin Hamidani, Director of Media Care Brand Solutions, felt that the budget reflects a strategic focus on economic stability, infrastructure growth, and digital innovation, which are positive steps toward long-term development.
He also addressed concerns remaining over limited direct relief for the middle class, job creation, and the rural economy.
“For the media, entertainment, and advertising sectors, the budget’s push for digital transformation and AI-driven innovation presents growth opportunities, but the absence of industry-specific incentives could limit immediate benefits,” Hamidani noted.
Speaking of the elephant in the room—taxes, Shrenik Gandhi, Co-founder and CEO of White Rivers Media, said, “For years, the middle class has been like that student who studies hard but rarely gets a gold star in the budget. This time, the government has finally handed them a well-deserved reward! The exemption of incomes up to Rs 12 lakh from tax is a game-changer, giving millions of salaried professionals more breathing room. More money in their pockets means more spending, which fuels businesses and strengthens the economy—it’s a win-win!
For once, the middle class isn’t just getting a mention—it’s getting a real, tangible benefit. A tax break today, a stronger digital economy tomorrow—this budget is balancing immediate relief with long-term progress!"
Moving on to the relief announced for gig workers and social security schemes slated to create a robust digital ecosystem, Chetan Asher, Founder & CEO of Tonic Worldwide, said, “The focus on AI in education, combined with universal broadband access in schools, will create a new generation of digitally native consumers and creators.
When you pair this with the formalisation of the gig economy through social security schemes, you're looking at a complete digital ecosystem transformation. This budget isn't just about digital infrastructure—it's about creating a more inclusive, secure, and skilled digital India that will fundamentally reshape how brands connect with their audiences.”
Appreciating the government’s focus on retail sector advancement via digital transformation and startup assistance, Kishor Fogla, Founder of Yellow Slice, said, “This strategy will pay off over the next 18 months, as we expect a 30% increase in retail technology adoption. The government’s focus on ease of doing business paired with manufacturing initiatives establishes a strong base to allow for sustainable retail growth for both offline and online channels.
With an increased focus on local manufacturing, retailers will be able to respond to shifts in consumer behaviour more effectively while reducing lead times and improving profit margins. Overall, this budget satisfies both short-term and long-term goals.”
Siddharth Devnani, Co-Founder and Director, SoCheers, said, “Budget 2025's focus on digital transformation through initiatives like the ₹20,000 crore R&D spending, DeepTech Fund of Funds, and investment in AI excellence centers signals India's commitment to technological advancement. The establishment of Atal Tinkering Labs and broadband connectivity in government schools will create a future-ready digital workforce.
Combined with the significant tax relief that increases disposable income across the middle class, these initiatives are likely to accelerate digital adoption and consumer spending. For the advertising and marketing industry, this presents a unique opportunity—we're looking at a more digitally connected consumer base with enhanced purchasing power.”
While Ajay Verma, Managing Partner at 0101 welcomes the investment in AI education and research, he questions whether the proposed Rs 500 crore for the Centres of Excellence in AI is enough to position India as a global leader in the space.
Verma expressed both support and concern regarding the key provisions of Budget 2025, particularly the government's emphasis on AI and digital transformation.
"Budget 2025 highlights the crucial role of AI and the digital revolution in driving India's growth. The government’s move to strengthen AI-related education and research is commendable, but is Rs 500 crore enough? It feels like too little, too late," Verma commented, emphasising the need for more aggressive investment to capitalize on AI’s potential.
While the budget outlines increased spending on cybersecurity to protect sensitive data and personal information, Verma expressed concerns over the lack of details regarding its implementation. "The focus on cybersecurity and increased spending is good, but we still await clarity on how these funds will be used and the scope of their impact," he noted.
One area Verma found notably absent from the budget was a strategy for enhancing data privacy—an essential component of a secure digital economy. "Investments in data privacy are crucial, but the budget was silent on this front," Verma added, highlighting its importance in protecting users and businesses alike.
Talreja of Globale Media said that the lack of a reduction in the 18% GST on advertising services remains a missed opportunity, particularly for SMEs and digital-first brands that operate with constrained marketing budgets. “A revision in this tax structure could have significantly alleviated financial pressures and encouraged broader ad spending,” he said.
"While I applaud the government's recognition of AI's importance in Budget 2025, the proposed ₹500 crore for AI Centres of Excellence feels inadequate. We need more aggressive investment to truly compete globally. Tax breaks for startups are helpful, but a 100% tax holiday would have significantly boosted innovation. The increased cybersecurity spending is a step in the right direction, but we need clarity on how these funds will be used. I'm also concerned about the lack of any mention of data privacy, a crucial element of a robust digital economy. Finally, the continued tax exemption for foreign media companies operating in India creates an uneven playing field for domestic players." - Ajay Verma, Managing Partner at 0101.
Finally, Verma pointed out the disparity in tax treatment between foreign and domestic media companies operating in India. "It beats me how dominant foreign media companies continue to operate with a 0% tax, while Indian digital media companies face stiff competition. This not only creates an uneven playing field but also deprives India of valuable tax revenue that could be used for digital industry initiatives," he concluded.