In the 20th century, Indian cinema became a global
enterprise, along with the American and Chinese film industries.
The Indian entertainment and media (E&M) industry has out-performed
the Indian economy and is one of the fastest growing sectors in India.
The Indian economy has been growing at a fast clip over the last few years,
and the income levels too have been experiencing a high growth rate.
Above that, consumer spending is also on the rise, due to a sustained
increase in disposable incomes, brought about by reduction in personal
income tax over the last decade. All these factors have given an impetus
to the E&M industry and are likely to contribute to the growth of this
industry in the future.
In the film production business, India is the world’s largest producer of films.
In 2009, India produced a total of 2,961 films on celluloid that include a
staggering figure of 1,288 feature films. By the end of 2010, it was reported
that in terms of annual film output, India ranked first, followed by America
(Hollywood) and China.
Given that fourteen (14) million Indians go to the movies on a
daily basis to see any of the over 800 films churned out by Bollywood
each year (that’s more than double the number of feature films produced
annually in the United States), the Indian film industry is expected to
grow annually at almost 18 percent to reach around INR 1200 billion
(approximately US $ 22 billion) by 2015.
Now a days, Indian films have become somewhat of an
international obsession. Bollywood films are being shown in American
and British theaters on a more and more frequent basis. These theaters have
become community foci for the South Asian communities around the world.
Though separated by a vast distance from home, South Asians have found
Bollywood films to be a great way of staying in touch with their culture
and their fellow South Asians.
Providing three to four hours of escapism is the primary objective of
Bollywood and it’s a recipe done well. Indian movies are becoming more
and more popular around the world.
Bollywood in Global Marketplace
Bollywood has experienced a marked growth in revenue in North American
and European markets, and is particularly popular amongst the South Asian
communities in large international cities as New York City, London, Zurich,
San-Francisco, Los-Angeles, Chicago, Houston, Dallas and Toronto.
Films from India do more business in the United States than films from any
other non-English speaking country. Numerous films in the mid-1990s and
onwards have been largely, or entirely, shot in New York, Los Angeles, London,
Zurich, Vancouver and Toronto.
Globally, Indian cinema found markets in over 90 Countries,
wherein Indian films are screened. The Indian government extended film
delegations to foreign Countries such as the USA and Japan, while the
Country’s Film Producers Guild sent similar missions throughout Europe.
The Indian diaspora consists of millions of Indians overseas for whom films
are made. These films are available through mediums such as DVDs and screening
of films in their Country of residence wherever commercially feasible.
Future of Indian Entertainment Industry
Today, India has probably one of the most liberal investment regimes
amongst the emerging economies with a conducive foreign direct investment
(FDI) environment. FDI in all film-related activities such as film financing,
production, distribution, exhibition, marketing etc. is permitted up to 100%
for all companies under the automatic route. This provision of 100% foreign
direct investment has made the Indian film market attractive for foreign
enterprises such as 20th Century Fox, Sony Pictures, Walt Disney Pictures and Warner Bros.
During the last few years, the trend of foreign private investment in Bollywood
has also been seen on the rising side due to low loss risk and opportunities of
huge profits to be made because of the global presence of Indian audience.
Propelled by innovation across its value chain and a series of enabling
regulatory actions, the Indian film industry is expected to grow annually
at almost 18 percent to reach around INR 1200 billion (approximately US $ 22 billion)
by end 2015.
Though films contribute just 27 percent to the entertainment revenues,
they form the heart of this industry. Indian films, especially the mainstream
Hindi film industry (Bollywood) dominate segments like music and live entertainment
as well as television, where popular films and film-based programs attract the
With the average Indian getting younger, and hence more likely to spend on
non- essentials, the entertainment industry has the potential to grow
explosively in the future.