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India's public relations industry expanded 11% in FY2026 to reach ₹3,230 crore, reinforcing its position as one of the fastest-growing communications markets in the Asia-Pacific region, even as the sector enters a more mature phase shaped by artificial intelligence, changing client demand and an increasing focus on business outcomes.
According to the PRCAI SPRINT 2026 report, released by the Public Relations Consultants Association of India (PRCAI), the domestic PR market now accounts for 12.6% of the Asia-Pacific market and is projected to grow to ₹4,500 crore by 2030.
Rather than rapid expansion alone, the report suggests the industry's evolution is being driven by structural changes in who is investing in communications and what businesses expect from PR.
One of the biggest shifts has come from the client mix. Government organisations now account for 11% of the industry's leading client categories, up from just 4% in 2022, while startups have nearly quadrupled their share to 22% during the same period. In contrast, private corporates, traditionally the backbone of PR revenues, saw their share decline from 48% to 42%. Education, edtech and FMCG also emerged among the fastest-growing sectors for communications mandates.
The report indicates that PR is increasingly being viewed as a business function rather than solely a reputation management tool. Nearly 46% of communication professionals surveyed said PR now directly contributes to business performance, while over 40% reported that CEOs are increasingly relying on communications leaders for strategic counsel.
The growing commercial relevance of reputation is reflected across key business metrics. An overwhelming 96% of respondents said PR helps strengthen investor confidence and customer loyalty, while 92% linked it to stronger stakeholder relationships. More than four in five respondents also associated effective communications with improved crisis resilience, and three-fourths believed it contributes to long-term revenue growth.
Artificial intelligence emerged as another defining theme of the report. Investment in AI has risen from 2% of industry revenues three years ago to 7% in FY2026, with firms expecting that figure to reach 10% within the next three years.
However, AI adoption is far from uniform. Large agencies are prioritising AI-powered analytics and enterprise-scale capabilities, while mid-sized firms are investing heavily in workforce upskilling. Smaller consultancies, meanwhile, are focusing on creative AI tools and third-party platforms such as ChatGPT, Gemini and Copilot to improve productivity.
Research and intelligence gathering has become AI's most common use case in PR, followed by content creation, meeting summaries, ideation and visual content development.
The report also highlights rising concerns around AI-driven misinformation. Nearly 80% of respondents identified AI-generated fake content and deepfakes as major reputational risks, while 85% believe formal AI governance frameworks will become essential for the communications industry.
The emergence of large language models (LLMs) is also reshaping how brands approach visibility. According to the study, 83% of respondents believe earned media is becoming more valuable because AI search tools increasingly prioritise credible third-party sources over paid content. At the same time, 70% expect Generative Engine Optimisation (GEO) to become a dedicated communications strategy as brands seek greater discoverability in AI-powered search experiences.
Regional communications is another area witnessing sustained momentum. Revenue from regional PR has nearly doubled over the past three years to 19% of the industry, with respondents expecting it to contribute 25% in the coming years. Around 65% identified Tier-II cities as the biggest growth opportunity for communications campaigns.
Influencer marketing is also becoming more mainstream, with its share of industry revenue doubling to 16%. However, nearly all respondents called for stronger verification and regulatory standards as concerns over authenticity continue to grow.
Despite the industry's expansion, measurement remains a key challenge. While 92% of respondents said the sector needs standardised performance metrics, fewer than half allocate dedicated budgets for measurement. Traditional indicators such as share of voice continue to dominate, but newer metrics including brand trust scores, return on objectives and AI search discoverability are beginning to gain traction.
The report also points to changing workforce expectations. More than three-fourths of respondents believe specialist-only professionals are becoming less relevant as clients demand multidisciplinary expertise. Organisations are increasingly favouring leaner, cross-functional teams capable of combining strategic advisory with execution.
Based on responses from 143 senior communications professionals across consultancies and corporate communications teams, the PRCAI SPRINT 2026 report concludes that India's PR industry is entering a new phase where AI adoption, measurable business impact and reputation-led growth are redefining the profession beyond traditional media relations.
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Rajat Abbi, Vice President – Marketing, Schneider Electric India
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