New Delhi : India is likely to increase its advertising expenses to 0.55 percent of its gross domestic product (GDP) from the current 0.52 percent within the next three years, says an industry lobby.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) noted in one its recent studies – Future of Advertisement Industry in India – that India currently spends 0.52 percent of its GDP towards advertisement.
China, Malaysia, Singapore, South Korea, the US and France spend more on advertisement to underscore their advantages as countries suited for global investment.
According to the study, India would need to efficiently market its achievements, its potential and the opportunities it provides as a potential billion plus market through effective advertisement campaigns and tenders.
Advertisements having a strong impact are required to showcase India's infrastructure, airports, seaports, railways and agriculture and roads.
"In the years to come, things will change and will have to be conveyed to end users through a medium – which is advertisement. And that is why India's advertisement expenses will grow to projected 0.55 percent towards its GDP," said Venugopal N. Dhoot, president of ASSOCHAM.
Advertisement in India has taken off in a major way with the opening up of the economy and its liberalisation.
"Today the growth rate (of the Indian advertising industry) is over 22 percent with the total size of the advertisement industry touching approximately Rs.16 billion by 2007," Assocham said.
However, it added that the Indian advertising industry is still in its nascent stage and the budget allocated for advertisements needs to be enhanced, along with the accessibility to advertisement sites.