Indian media and entertainment industry has the potential to emerge as a $ 100 billion industry ( Rs. 65000 crore ). At present, it is Rs. 115,500 crore industry. It accounts for 1.7 per cent of the GDP and provides employment to around 5 million people. The number of films made in India every years is the highest — 1950 films in 2014. It is the second largest print industry and the third largest TV viewership base. The digital devices, now at 250 million, will reach 600 million by 2020, providing a big boost to digital media. In the developed world the digital media has cannibalised the traditional media. It has hurt print and music the most. TV, films and radio have been affected to a lesser extent by the digital media. In India, the traditional media is also very economical.The monthly subscription of newpapers cost hardly $ 2 — $ 5 in India, whereas it is $ 20 in the US. Media consumption hours in India are less than those in the developed market. India’s M & E sector could equal India’s IT sector in a few years. The government has to provide the enabling environment.