New Delhi, Nov 13: Flexible policies coupled with increased participation of private players will spur the Indian radio sector to become a Rs 1,200 crore (267 million dollars) industry by 2010, a study has revealed.

The growth would not only be fuelled by increasing radio listeners in major towns but also in 70 small cities with the majority of the population belonging to socio economic classes B, C and D, the study conducted by industry chamber FICCI and global consultancy firm Pricewaterhouse Coopers said.

The size of the Indian radio industry, however, will form a small part of the total global radio industry size, which is slated to become a 58.8 billion dollar industry by 2010, said the report which was released today.

According to the report, the number of cities in India tuned to FM Radio, after the liberalised FM policy, would increase to 91 compared to the current 21 with as many as 40 private players operating as against the current seven.

The Indian radio sector is poised to get an estimated investment of half a billion dollars in the next 24 months, industry experts pointed out.

Radio advertising, which presently has two per cent of the country`s total ad-spend, would see a substantial rise over the next 10 years on account of increased listenership catering to a wide-population base, it said.

However, to capture a substantial share of the country`s ad-spend, the report recommends consolidation in the sector, to offer advertisers a wide-reach.