New Delhi: The rollout of GST 2.0 reforms, effective September 22, 2025, is set to deliver a significant uplift to India’s advertising expenditure (AdEx), with an estimated Rs 274 crore incremental boost to the overall advertising market in 2025.
According to industry projections, India’s ad market — pegged at Rs 1,37,099 crore in 2025 — is now forecast to grow at 8.0% versus a baseline projection of 7.8%. The GST cuts are expected to coincide with the festive season, creating a strong multiplier effect when consumption typically peaks.
Television and Traditional Media Emerge Stronger
Television will be one of the biggest beneficiaries, with total AdEx projected at Rs 41,459 crore in 2025, reflecting a 12% growth versus the baseline of 4%. This translates to Rs 3,071 crore additional spending, as festive campaigns account for nearly 30% of annual ad investments. Print and radio are also expected to gain, with festive print AdEx projected to grow 10–15% in Tier 2–3 cities.
Digital advertising will maintain its dominance with a 49% market share, growing at 11.4% to Rs 67,991 crore, led by social media and short-form video. However, traditional media is set to see disproportionate gains from the GST-led consumption push.
Sector-Wise Winners
The GST rationalisation has created clear sectoral winners:
- Automobiles: GST reduced from 28% → 18% for small cars and two-wheelers; AdEx growth expected at 25% above baseline.
- FMCG: Essentials like toothpaste, shampoo and soaps see GST cut from 18% → 5%; AdEx growth projected at 20%.
- Electronics/Durables: ACs, large TVs, washing machines now taxed at 18% (vs 28% earlier); AdEx growth at 22%.
- Insurance: Life and health premiums fully exempt from GST; AdEx expected to rise 15%, adding Rs 658 crore.
Festive Season Surge
Base festive AdEx is pegged at Rs 41,000 crore (30% of annual spend). With the GST boost, festive ad growth is projected at 15% (vs baseline 12%), raising festive AdEx to Rs 47,150 crore.
Industry experts suggest that GST rationalisation will unlock a new wave of consumer-driven marketing investments. While digital continues its growth trajectory, the revival of television and print will define the festive surge. Risks remain around fiscal neutrality and whether GST benefits are passed to consumers, but the consensus is clear: GST 2.0 represents a catalyst for India’s advertising economy.
