India's fast-growing entertainment industry is set to touch Rs.588 billion ($13 billion) in revenues by 2010, said a study report issued Tuesday.

The country's robust economy, rapidly increasing numbers of affluent middle-class Indians and the growing penetration of Indian content in overseas markets will aid the growth in the years ahead, said the report.

The study report, "Indian Entertainment Industry - Focus 2010: Dreams to Reality", was compiled by the Confederation of Indian Industry (CII) and management consultancy firm KPMG.

"The Indian entertainment industry is currently estimated at Rs.222 billion and is expected to grow at 18 percent per annum to reach Rs.588 billion by 2010," Rajesh Jain, industry director of KPMG India, told a news conference here.

According to the report, the growth will be powered by new technological breakthroughs, increasing content variety and a series of enabling regulatory actions.

"All these are expected to change the way content is produced, delivered and consumed," it said.

The CII-KPMG report said the bulk of the industry's growth in the years ahead would continue to come from television, which is expected to cross Rs.370 billion by 2010.

The film industry is expected to grow significantly, crossing Rs.140 billion by 2010, powered by increasing discipline and rising efficiency levels and penetration into hitherto uncharted overseas markets.

"One of the key imperatives that can realise this potential is the need for focus and effective collaboration between the key stakeholders," said Subhash Ghai, head of CII's national entertainment committee.

"The industry's potential will become a reality if content providers, distributors, infrastructure and technology providers, investors and the government work together to address the issues and constraints faced."

According to the report, a number of actions need to be taken by major stakeholders, who include the industry and the government, to ensure that the entertainment industry realises its true value.

"The report articulates a 10-point stakeholder charter, an agenda for action for the stakeholders of the industry that include the Indian government, the regulator and industry players," said Jain.

"The charter aims to form the strategic blueprint for the industry to undertake concerted action that will result in strong growth based on stable fundamentals."