The FM radio sector argues that these and other rules are hampering their growth, warning that the entire FM radio ecosystem could dwindle unless government intervention occurs soon. The signs of distress are already apparent.
Recently, HT Media revealed plans to relinquish multiple FM radio licenses in major markets, resulting in five of its stations going off the air on June 15. The industry has called on the government to promptly implement essential reforms before more media firms shut down their FM operations, which are struggling against digital audio competitors like podcasts and streaming services.
“The global shift toward on-demand audio is undeniable and well documented,” stated Nisha Narayanan, director and COO of Red FM, in an interview with PTI. She emphasized that the pressing issue is whether the FM sector is provided with a fair regulatory framework to “compete, innovate and monetize effectively” during this transition.
At present, the industry’s four main requests include: permitting private FM stations to air news and current events—currently a privilege reserved for All India Radio; cutting GST on radio services from 18% to 5%; enabling smartphone manufacturers to unlock FM receivers in devices; and establishing a model under which radio companies would pay the government a fixed percentage of their actual earnings as a license fee, instead of fees tethered to outdated auction prices.
For millions of Indians, FM radio serves as a daily companion. Whether in commuting to work, at home, in cars, or in smaller towns, it remains one of the most accessible sources for entertainment and information.
In contrast to internet-based audio platforms, radio functions without a data connection and is capable of reaching audiences even during power outages or network failures.
The government’s stance, however, is that the challenges facing FM radio cannot be viewed solely through regulatory lenses.
Union Minister of Information and Broadcasting Ashwini Vaishnaw informed PTI that the sector is experiencing a wider technological evolution, akin to transformations seen in other industries.
“We are all conscious of the substantial technological shifts occurring, whether in news or entertainment… the complete transition to digital has been ongoing over recent years and poses a significant challenge for the FM sector,” he remarked.
Vaishnaw pointed out that such technological changes inevitably alter industry landscapes, drawing comparisons with the decline of landlines following the widespread adoption of mobile phones and the transition from traditional vehicles to electric ones.
“Every such technological change brings modifications in the industry structure,” he remarked.
Regarding the demand from the industry to allow private FM stations to broadcast news, the minister stated that the government is currently reviewing the matter.
“This is a request from FM stations and providers that we are considering. It has multiple implications as we need to acknowledge the historical context and must decide today with that history in mind. We will be making decisions on this matter soon,” he said.
The industry contends that the challenges it faces extend beyond the emergence of new platforms. The Association of Radio Operators for India (AROI) notes that radio is now the only segment of India’s media and entertainment field that is contracting.
While the overall Indian media and entertainment industry expanded by 9% to ₹2.78 lakh crore in 2025, radio revenues plummeted by 7% to approximately ₹2,300 crore, according to AROI estimates. Furthermore, the industry’s share of advertising spending has sharply decreased in the last decade.
Industry forecasts indicate that radio’s portion of the advertising market has dwindled from over 3.4% in 2015 to around 1.1% in 2025. Revenues for the private FM sector in 2025 were roughly ₹1,819 crore, trailing behind 2020 figures despite a notable rise in the number of stations in operation.
The difficulties faced by radio cannot be seen in isolation from the pandemic’s economic disruption and the uneven recovery that ensued, according to Narayanan.
“What the industry didn’t fully foresee was the compounded effect of several severe challenges converging simultaneously,” she mentioned.
Industry revenues, she stated, dropped by nearly 50% from pre-COVID levels and have yet to completely rebound. At Red FM, government ad volumes fell over 30%, with revenue from that sector down by 27% compared to pre-pandemic levels.
Radio City CEO Abe Thomas highlighted that both industry choices and policy shortcomings have contributed to the current predicament.
“The industry grew aggressively, banking on a local advertising surge that didn’t materialize as fast as anticipated, and the slow post-COVID recovery is when the real pain began,” he said.
“Concurrently, policy obstacles—news restrictions, fragmented implementation, and delayed reforms—have severely hampered monetization more than what comparable global markets face. No single factor can explain the current state; rather, it is the combination that has been harmful,” he pointed out. One of the significant frustrations for the industry is the ban on independent news broadcasts by private FM stations.
“The prohibition on news has been one of FM’s most significant lost opportunities. News fosters habitual listening, enhances community engagement, and uncovers new revenue streams,” Thomas asserted.
Industry figures emphasize that countries like the United States, United Kingdom, Australia, and the Philippines have successfully woven news, talk programming, sports, and local content into radio formats, aiding their relevance even in the streaming era.
What could set FM radio apart from music streaming services, they argue, is localized news, civic information, community discussions, and city-specific content. However, the draft Telecommunications (Television, Radio and Associated Services) Rules, 2026—recently released for public feedback on June 12—continues to uphold the existing constraints on news broadcasting. Broadcasters claim that the current licensing structure remains one of the most pressing challenges for the industry.
“The FM radio sector has been burdened by inequitable regulations,” one industry representative stated, noting that license extension fees linked to historical auction prices impose an uneven weight on operators.
Broadcasters seek automatic license renewals for existing operators rather than new auctions.
“The present batch of FM licenses is due for renewal in 2030, which is not far off. With a complete lack of clarity regarding the renewal framework, pricing, or TRAI recommendations, it’s incredibly difficult for operators to commit to long-term investments in personnel, technology, or content without knowing the future,” Narayanan explained.
Another long-standing request concerns the activation of FM radio receivers on smartphones. Broadcasters argue that FM chips exist in many devices but are often disabled, pushing listeners towards internet-based streaming rather than free over-the-air radio broadcasts.
“Activating these requires a software unlock, not a new component. This isn’t market interference; it’s a straightforward policy adjustment,” Narayanan asserted.
In her perspective, radio continues to serve as a vital public service medium, especially in a country where internet access is still inconsistent.
“There are over 40 crore daily listeners across AIR, private FM, and community radio in India. Radio provides crucial last-mile access that no streaming platform can rival. It operates without internet, without subscriptions, and on battery-powered devices during outages and emergencies,” she stated.
Thomas concurred that FM radio continues to deliver unique public value, particularly in times of crisis.
“FM is the most reliable medium during disasters and network failures—this holds significant public-interest value in a country as vast and diverse as India,” he remarked.
The ongoing discussion about the future of radio has increasingly focused on competition from streaming services, podcasts, and other digital audio platforms like Spotify.
“The transition to on-demand audio is tangible and irreversible. Nevertheless, FM still provides localized relevance, immediacy, broad reach, and trust, particularly during commutes, emergencies, and regional events,” Thomas stated.
Radio operators also express concerns regarding a broad cost disadvantage when compared to digital platforms. Industry estimates suggest that around 40% of gross revenue is consumed by GST, license fees, and spectrum-related expenses.
Broadcasters mention that the sector contributed nearly ₹999 crore to the government in FY26, while the 18% GST rate places radio at a disadvantage compared with other media segments taxed at 5%.
Despite this, industry leaders remain split between apprehension and hope regarding future prospects.
“The phrase ‘radio company’ itself is becoming outdated. Consumers no longer differentiate between FM, podcasts, streaming, or social audio; they simply consume content,” Thomas explained.
He believes that future growth will stem from creating integrated ecosystems that encompass broadcasting, digital content, branded entertainment, live experiences, and regional storytelling.
However, without reforms, executives warn that the industry may face significant decline before such a transition is complete.
“If there are no changes within the next two to three years… smaller operators will exit the market, deeply local stations will become inactive, and what remains will be leaner, more urban-focused, and significantly less representative of the diverse voices FM radio was designed to convey,” Narayanan cautioned.
