Film industry pegged to grow at 11.5 per cent: PHD report

09 Oct,2017

By A Correspondent

 

The PHD Chamber of Commerce and Industry has projected that the Indian film industry is expected to grow at 11.5 per cent year-on-year, reaching total gross realisation of INR 238 billion ($3.7 billion) by 2020 as against its, CAGR of over 10 per cent in the last couple of years.

 

The prognosis has been made jointly by the PHD Chamber and its Knowledge partner BnB Nation which was released in Mumbai during the ‘PHD Chamber Global Film Tourism Conclave: ‘Promoting Destinations through Films’ held over the weekend.

 

Said Mukesh Gupta, Chairman-Tourism Committee, PHDCCI: “The objective of organizing this conclave was to promote film tourism, highlighting the tourism destinations across India and abroad to encourage Indian as well as foreign film-makers to shoot films there. As per a survey, Indians top the tourism charts for the number of tourists visiting the famous locations abroad.

 

According to the knowledge report, the film industry faces multiple challenges on regulatory fronts such as about 70 approvals and licences from as many as 30 authorities for shooting films in India.

 

“Delays in approvals process often results in filmmaker going to other destinations despite cost advantage in the country.  Due to hurdles in obtaining licenses, India has lost at least 18 big budget movies to other locations in the last four years.  Though the Indian film industry is the largest in the world in terms of number of films produced with around 1,500 to 2,000 films produced every year in more than 20 languages. The industry also had the second highest footfalls in the world in 2015 (over 2.1 billion) following China (almost 2.2 billion)”, highlights the report.

 

“Currently, India is gaining traction as a film shooting destination. 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. 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 realization of Indian film industry is $2.1 billion versus gross realization of film industry in US and Canada is $11 billion even though they produce only 700 films as opposed to 1500+ films produced in India. This is mainly due to low ticket realizations and occupancy levels, lack of quality content, and rampant piracy. Though Indian film fraternity and government have taken a stand against piracy but Piracy continues to haunt film fraternity with dire consequences. Historically, the film industry in India has grown at a CAGR of over 10 per cent in the past”, further emphasis the report.

 

The report concludes stating that states should undertake various initiatives like setting up surveillance cameras, tourist police, 24×7 help lines, and compulsory registration of tourist guides operators, etc. to ensure safety of the tourists as well as the film crew. These initiatives may be highlighted by the states/ Central Government in various promotional campaigns to project India as a safe and secure tourist destination. Investment in Infrastructure: Inadequate infrastructure acts as the biggest hindrance to the Indian film tourism industry, and has been affecting its growth since past several years. Bad road conditions; poor connectivity; inadequate air and sea port capacities; and lack of development of modes of transports, like railways, and alternates, like inland water transport and domestic aviation, have been causing delays in the film tourism industry operations. Due to this, costs per film in the Indian film industry increases; and ultimately leads to disturb the planned budget. Therefore, there is an urgent need for investment in infrastructure linking roads, railways and airports, to curtail the losses.

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