The Indian radio industry is poised to grow at a rate of 18 percent, contributing $313.75 million (Rs 19.6 billion) in 2015 and $632 million (Rs 39.5 billion) in 2019, according to the annual FICCI-KPMG Indian Media and Entertainment industry report of 2015.

The report also says that 2014 was an important year for the radio industry as the government started proceedings on the much delayed and highly anticipated Phase III auctions.

Giving details on spending on radio in the country’s general elections last year, it said that the Bhartiya Janata Party (BJP) used around 400,000 radio spots.

It spent 12 to 15 percent of its election budget on the medium, making it one of the biggest campaigns for the radio industry.

It also states that Community Radio stations are growing in India, with 179 of them being operational.

While considering the cap of 26 per cent on FDI in radio a hindrance for growth of the industry, the report also stated that Phase III will help radio compete with television more effectively.

According to Radioandmusic.com, Information and Broadcasting Ministry Additional Secretary, J S Mathur said: “It is a very exciting time for Phase III as the Government has given the e-auction a nod. In the next year, we will see thousand odd channels across the length and breadth of the country.”