Film industry in India to hit $3.7 billion by 2020, says report
ET Bureau|
Updated: Oct 09, 2017, 12.46 AM IST
MUMBAI: The Indian film industry is expected to grow at 11.5% year-on-year, reaching total gross realisation of Rs 23,800 crore ($3.7 billion) by 2020, according to a report by industry lobby PHD Chamber and bed & breakfast accommodations aggregator BnBNation.
At present, the film industry grosses a total revenue of Rs 13,800 crore ($2.1 billion), and it has grown at a CAGR (compound annual growth rate) of over 10% in the last couple of years.
The film industry faces multiple challenges on the regulatory front, the report said, citing, about 70 approvals and licenses a filmmaker is supposed to take from as many as 30 authorities for shooting a film in India.
It said India is gaining traction as a film-shooting destination and after the success of India-based movies, such as Slumdog Millionaire, several international studios are increasingly considering shooting a large portion of their films in India.
“India has been used as a film-shooting site for various Hollywood movies such as The Second Best Exotic Marigold Hotel, Million Dollar Arm, The Hundred Foot Journey, Life of Pi, Mission Impossible IV and Jobs,” the report said. However, due to hurdles in obtaining licenses, India has lost at least 18 big budget movies to other locations in the last four years, it said.
“Delays in approvals process often results in filmmaker going to other destinations despite cost advantage in the country… the growth of the industry could be far more if its regulations are minimised,” it said.
For shooting a foreign feature film, prior approval of the information and broadcasting ministry is required, while for a documentary, approval of the external affairs ministry is required, it said.
Despite the hurdles, the Indian film industry is the largest in the world in terms of number of films produced. India produces 1,500-2,000 films every year in more than 20 languages. But though India boasts of a large number of films and theatre admissions, the Indian film industry is small with respect to other global industries in terms of revenue.
The gross realisation of Indian film industry at $2.1billion is minuscule compared to the gross realisation of film industries in the US and Canada, which is at $11 billion even though they produce only 700 films annually.
At present, the film industry grosses a total revenue of Rs 13,800 crore ($2.1 billion), and it has grown at a CAGR (compound annual growth rate) of over 10% in the last couple of years.
The film industry faces multiple challenges on the regulatory front, the report said, citing, about 70 approvals and licenses a filmmaker is supposed to take from as many as 30 authorities for shooting a film in India.
It said India is gaining traction as a film-shooting destination and after the success of India-based movies, such as Slumdog Millionaire, several international studios are increasingly considering shooting a large portion of their films in India.
“India has been used as a film-shooting site for various Hollywood movies such as The Second Best Exotic Marigold Hotel, Million Dollar Arm, The Hundred Foot Journey, Life of Pi, Mission Impossible IV and Jobs,” the report said. However, due to hurdles in obtaining licenses, India has lost at least 18 big budget movies to other locations in the last four years, it said.
“Delays in approvals process often results in filmmaker going to other destinations despite cost advantage in the country… the growth of the industry could be far more if its regulations are minimised,” it said.
For shooting a foreign feature film, prior approval of the information and broadcasting ministry is required, while for a documentary, approval of the external affairs ministry is required, it said.
Despite the hurdles, the Indian film industry is the largest in the world in terms of number of films produced. India produces 1,500-2,000 films every year in more than 20 languages. But though India boasts of a large number of films and theatre admissions, the Indian film industry is small with respect to other global industries in terms of revenue.
The gross realisation of Indian film industry at $2.1billion is minuscule compared to the gross realisation of film industries in the US and Canada, which is at $11 billion even though they produce only 700 films annually.
