India to pay up to Rs 25,000 crore for online ad ads, says new government

  • November 1, 2021

India has decided to pay the advertising industry a total of Rs 25.1 crore for its online advertising services and will now set aside another Rs 10 crore for ad placement.

The government will also set aside Rs 2.3 crore for advertisements in the national stock market.

In a statement on Tuesday, the ministry of information and broadcasting (MI) said it had decided to take the decision after consultations with industry and stakeholders.

“The move comes as part of the government’s efforts to attract more foreign investment to the country and to support the digital economy, and in keeping with the government initiative to make the internet the backbone of India’s economy,” the statement said.

The government has recently been trying to attract foreign investment for the internet and the country’s advertising sector has been on the back burner.

Its decision comes as the country is facing a spate of data breach cases.

The Centre has also asked internet companies to ensure that data about users is only accessible by the user.

The digital ad industry is a huge part of India, accounting for more than 50% of the countrys ad revenue.

The industry is estimated to generate Rs 9.7 lakh crore in digital ad revenue and make Rs 1.2 lakh crore on online ads.

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