Impact of the budget on the Radio Industry
Radio City 91.1 FM CEO and AROI president Apurva Purohit said "The budget has little to offer for the media industry in general and to the radio industry in particular. No specific measures which would contribute to the growth of the Radio Industry have been announced.

For radio in particular, in the light of the recent recommendations by TRAI - we are very happy that many of the views - of both large and small players have been taken on board by TRAI; keeping in mind the need to deregulate this industry further with the single minded objective of seeing FM flourish in every part of the country.

Thus at this point in time, the policy implications of Phase III hold more promise for the radio industry in particular than the Budget."

Sectoral impact of the Budget on media
"Although one still needs to access the fine print, one can draw inferences from certain developments. For example: Development and supply of content for use in advertising purposes has been brought under service tax net. This is likely to see an increase in advertising cost bringing a slowdown in advertisement revenues to broadcasters and print media which will ultimately be passed on to the consumer. The extent of this slowdown on ad revenues however also depends on the performance and growth potential of industries such as FMCG, pharma, telecom and software that are involved in huge ad spends.

The change in the way consumers consume content from many alternatives and the manner in which this content is delivered to them by multiple players will influence growth. All segments in the industry are projected to grow. Maximum growth is expected in television and film segments, followed by the radio, print and the music."

The budget overall
"Overall, the budget can be classified as populist with no specific benefits to the media industry overall and the radio industry in particular. The increase in Exemption Limits on Personal Income Tax is positive for the salaried class. However the fact that there is no change in Corporate Income Tax is a disappointment. Reduction in base rate of Excise Duty from 16% to 14% is positive for the industry overall."