I&B Ministry Overshoots Budget By Rs 1,745 Crore As FM Radio Auction Struggles

India’s Ministry of Information and Broadcasting (I&B) exceeded its revised budget estimate by Rs 1,745 crore in 2025-26, even as its latest private FM radio auction struggled to attract broadcasters, with less than 9% of the channels offered finding buyers.

According to the ministry’s 2025-26 annual report, its initial budget estimate stood at Rs 4,358 crore, which was subsequently revised to Rs 6,103 crore, marking an increase of nearly 40%.

A significant portion of the additional allocation went to Prasar Bharati, the public broadcaster operating Doordarshan and Akashvani. Its allocation increased from Rs 2,380 crore to Rs 4,059 crore. However, the annual report did not provide a detailed explanation for the increase.

The report also highlighted discrepancies in the ministry’s budget projections for 2026-27. While one section puts the allocation at Rs 4,302 crore, the accompanying table reflects a higher figure of Rs 4,552 crore.

FM Radio Auction Sees Limited Response

The private FM radio sector remained a key area of concern, with the government's July 2025 e-auction witnessing limited participation.

Of the 730 private FM radio channels offered across 234 new cities, only 63 channels across 43 cities were sold. This represents less than 9% of the total inventory put up for auction. Although 19 companies qualified to participate, most did not proceed with bids.

India currently has 385 private FM radio stations across 113 cities, with the sector contributing Rs 7,088 crore to the government exchequer since 2000.

The limited response points to challenges in expanding private FM radio into smaller markets, where broadcasters may be assessing the commercial viability of entering new cities against the costs involved.

Spending Priorities Across Media and Entertainment

The annual report also highlighted changes in allocations across various media-related schemes. Spending on development communication was reduced from Rs 238 crore to Rs 196 crore, while the community radio scheme saw its allocation fall from Rs 17.40 crore to Rs 8 crore.

Meanwhile, broadcasting infrastructure received an increased allocation of Rs 550 crore, and film promotion spending rose to Rs 424 crore.

The ministry also highlighted the progress of the World Audio Visual and Entertainment Summit (WAVES), inaugurated by Prime Minister Narendra Modi in Mumbai on May 1, 2025. The event attracted delegates from more than 100 countries and generated memorandums of understanding worth Rs 8,000 crore. WAVES Bazaar recorded deals exceeding Rs 1,300 crore through more than 3,000 meetings.

Other developments included the launch of the Indian Institute of Creative Technologies in Mumbai, focusing on animation, gaming, visual effects and extended reality.

Digital Broadcasting and Regulation

The report noted that India's television ecosystem had 920 permitted channels at the end of 2025, comprising 415 news channels and 505 non-news channels. DTH operators contributed Rs 618 crore in licence fees during the calendar year.

DD Free Dish continued to expand its reach, with market estimates placing its presence at more than 40 million households. Its streaming platform, WAVES OTT, crossed 8.8 million downloads by December 2025.

On the regulatory front, the ministry reported blocking 25 OTT platforms over alleged obscene content, alongside 26 websites and 14 applications.

The report also highlighted the ministry's media monitoring and fact-checking initiatives, including action against misinformation during Operation Sindoor.

Overall, the annual report reflects the ministry's expanding role across broadcasting, digital media, film and the creator economy. However, the limited response to the private FM radio auction raises questions about the commercial attractiveness of expanding radio services into newer markets.