Indian Public Relations Industry Grows Significantly as Global Trends Reshape Industry

New Delhi: The Indian public relations industry continues to expand its footprint, driven by the country's growing economic landscape. According to the PRCAI's (Public Relations and Communications Association of India) SPRINT 2024-25 study, the sector has grown more than three times compared to global PR, reaching ₹2,500 crores in revenues in 2023.

The industry's share in the Asia-Pacific market increased from 15.4% in 2022 to 17% in 2023, highlighting its significant growth in the regional market. While advertising grew 7%, PR clocked 11% - a sign of the shifting communication landscape.

The SPRINT study reveals that public relations (PR) is shifting towards business impact, rather than traditional measurable yardsticks like media quantity. Corporate communicators prioritize tangible business impact over other factors, indicating a trend move towards outcome-driven PR.

Private corporates remain the largest revenue contributors to PR, accounting for 46% of the total share, while start-ups are quickly rising to account for 22%, followed by NGOs at 11%. Purpose-driven PR is gaining traction, with key sectors prioritizing narrative alignment with brand philosophy and values.

The study also notes that the rise of regional PR, influencer marketing, public affairs, and social media trends emphasizes a shift away from commoditized media relations. Cultural sensitivities are critical in regional storytelling and PR, according to 88% of professionals.

Artificial intelligence (AI) will fuel the communication industry's growth but also present new challenges. The top two applications of AI in Indian PR are research and strategy (82% of respondents) and conversational AI (77%). However, there are risks associated with AI, including misinformation and deepfakes.

The 11% revenue growth of ₹400 crores means this is the eighth year of double-digit growth in the last 10 years. Despite this growth, challenges persist, particularly talent management and quality of work. One in six corporate communicators expects that specialization will boost the quality of work but increase costs for consultancies.

Managing Talent will be crucial to navigating these challenges. The PR industry has added 1,300 professionals in FY2023, with an attrition rate of 16%. To retain this talent pool, leaders must adapt and foster a more inclusive environment.

Gen Z's influence is rapidly shaping the employee mix of most PR firms. Respondents believe that recognizing and rewarding Gen Z talent can boost morale and retention. The SPRINT study highlights the rising importance of Indian PR as a globally significant sector in the 21st-century communication landscape.

Key Highlights:

• ₹2,500 crores in revenues for Indian PR in 2023
• Industry share in Asia-Pacific market increased from 15.4% to 17%
• 11% revenue growth of ₹400 crores (FY2024)
• Shift towards business impact and outcome-driven PR
• Rise of purpose-driven PR with key sectors prioritizing narrative alignment
• Increased importance of cultural sensitivities, regional storytelling, and influencer marketing

Author: Deeptie Sethi is Chief Executive Officer, PRCAI.