The Federation of Indian Chambers of Commerce and Industry (FICCI) has welcomed the Union Budget 2024, particularly its initiatives aimed at bolstering the Media and Entertainment (M&E) sector. However, FICCI emphasizes that while the budget outlines promising plans, a more substantial financial commitment is crucial to fully realize these initiatives’ potential. The sector has seen a marginal decline in overall budget allocation for 2024-25, with a 2.409% decrease from the previous year, bringing the budget outlay to ₹4342.55 crore.
Key budget allocations and their implications highlight several significant measures aimed at strengthening the sector include:
- Broadcast Infrastructure and Network Development: The budget allocates ₹500 crore to create new interactive programs designed to inform, educate, and entertain the public, reflecting regional culture and history. This initiative includes 2,190 hours of new programming for DD Kisan. Enhanced coverage in sensitive areas, such as border regions, is a priority.
- Digitization and modernization of broadcast infrastructure: Significant upgrades are planned for existing production setups, including studios, news units, and OB vans, as well as the addition of new ones.
- The budget aims to upgrade 11 production/transmission centers to HD and procure 7.5 lakh DTH set-top boxes for remote, tribal, and Left-Wing Extremism (LWE) areas. These measures are expected to enhance production and playout facilities by 68.7% and increase DTH platform TV channel capacity by 89.8%.
- Continuation of bind scheme projects: Completion of remaining projects under the Broadcasting Infrastructure and Network Development (BIND) scheme, with the installation of 7 new FM transmitters, will extend coverage, especially in border and rural areas.
- Expansion of Public Service Broadcasting: The budget supports the expansion of FM services with the introduction of 26 new FM channels, increasing the coverage area by 4.5%.
- Mobile industry incentives: The reduction of Basic Customs Duty (BCD) to 15% on mobile phones, mobile PCBAs, and chargers is expected to lower costs, boost sales, and enhance the global competitiveness of Indian mobile phones.
- Ease of doing business: The Jan Vishwas Bill 2.0 and incentives for states implementing Business Reforms Action Plans and digitalization are key measures. The decriminalization of certain offenses and data governance improvements are set to streamline business operations.
- Abolition of Angel Tax: This move is seen as a significant boost for the startup ecosystem, encouraging domestic investment in M&E startups and fostering growth and innovation.
In conclusion, while FICCI appreciates the government’s commitment to enhancing public service broadcasting and regional representation, it calls for increased financial allocation to support these initiatives. The budget’s new announcements will strengthen content coverage in sensitive areas, ease of doing business, and domestic investment in the entertainment sector. To truly facilitate growth and capitalize on emerging opportunities in the digital age, a more substantial budget allocation is essential.
