The increase was implemented after Nielsen Media Research's television audience measurement ratings for August found that all the top 20 shows in the country belonged to the Hindi entertainment channel. Star Plus also owned 43 of the top 50 programmes.
With the increase, a 10-second prime-time slot sells for US$10,620, up from $8,330 previously.
In comparison to Star Plus, the other two Hindi entertainment channels, Sony Entertainment Television (SET) and Zee TV charge significantly lower rates. SET's prime-time rate of $4,375 is less than half of Star Plus's.
The channel's domination has been attributed to its evolving line-up of programmes across all genres, particularly soap operas such as Mother-in-law was once a Daughter-in-law and Household Tales in addition to quiz shows.
Along with the increase, the station has also reorganised its advertising dayparts, selling its afternoon segment as specific slots.
L. Nayak, Star India executive vice-president of sales and marketing, said: "We could increase the rates because we were attracting larger audiences.
Besides, advertisers have started seeing value in buying afternoon slots as they realise that they can reach the same audience at much lower costs."