As per a latest joint report by Federation of Indian Chambers of Commerce and Industry (FICCI) and the research firm KPMG, the media and entertainment industry of India is expected to be back on track after facing a slowdown for two years.

The report says that the key factors that will drive the growth of this sector in 2010 will be the digitization of the industry, expanding regionalization of content, increasing competition, more focus on innovation and increased emphasis on marketing and distribution.

The FICCI-KPMG report stated that India's media and entertainment (M&E) industry had to ride through the tough economic times due to the global financial turmoil that affected India's economy too. The media and entertainment industry is very largely dependent on advertising revenues.

On an average, almost 40% of its revenues come through the advertisement bucks spent by the corporate world. Thus, a slowdown in the economy that made corporate India tighten their pockets, hit the media industry badly. The M&E industry grew just by a small 1.3% in 2009. But with the economy headed back on the right track, the companies are expected to be more generous with the marketing expenditure. This suggests a positive outlook for this industry in 2010.