The television industry will lead the sector as the country's rural poor benefit from rising incomes and are able to buy sets and subscribe to pay-per-view channels, said the report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and PricewaterhouseCoopers.

Cinemas were also being upgraded to multiplexes across the country and new technology was helping the Indian movie industry which churns out some 1,000 films a year which makes it the world's most prolific.

"With our vast pool of software engineers and creative story tellers, India is poised to leap-frog from a mere outsourcing destination to the holders of new intellectual property," Saroj Kumar Poddar, FICCI president, said in the release of the report to industry executives in the country's entertainment and financial capital.