Indian biz contributes $6.2 bil to GDP
Film, TV biz employs 1.8 million peopleNEW DELHI -- The Indian film and TV industry contributed $6.2 billion to India's GDP in the financial year 2008-09 while employing 1.8 million people according to a report "Economic Contribution of Indian Film and TV Industry" launched Friday in New Delhi at the Asia Society Conference.
Commissioned by Mumbai-based Motion Picture Distributors Association (India), representing the MPA in India, the study was prepared by PricewaterhouseCoopers India and measures the economic impacts created by the film and television industry, and combines them to determine the industry's total economic contribution.
The total film industry contributed $1.5 billion to the Indian economy, of which the report's key findings include the contribution of the U.S. and international film industry in India at $67 million, employing 14,000 people, reflecting the dominance of the local industry.
The total gross output (total revenue from various streams such as theatrical, home video etc) of the U.S. and foreign film industry in India is estimated at $180 million.
The report estimates overall Indian boxoffice collections at $1.8 billion which is projected to grow at a compound annual growth rate (CAGR) of 10% by 2013 to touch $2.8 billion.
The economic contribution to the economy by the television industry is valued at $4.6 billion. The overall size of the TV industry in 2008 is estimated at $5.4 billion projected to grow at a CAGR of 11.4% to touch $9.2 billion by 2013.
The combined revenues of the Indian film and television industry were over $7.7 billion in 2008 and the report predicts that this is expected to grow 11% over the next five years, reaching a size of over $13 billion by 2013.
The study also found that the Indian film and TV sector has a total gross output of $20.4 billion (the total value of goods and services supplied by the industry) and contributes more to the GDP of India at 0.53% than the advertising industry which constitutes 0.4 per cent.
"This report demonstrates the importance of the film and television sector to the overall growth and vitality of the Indian economy," said Glickman who launched the report in his last international engagement before he ends his MPA term. "Indians should be proud of the staggering growth that the film and television industry has achieved." But Glickman warned of the threat of piracy that "jeopardizes a movie's ability to make money -- if at all."
A study undertaken by the U.S. India Business Council and consultants Ernst & Young showed that piracy cost the Indian film industry $959 million and some 571,000 jobs in 2008.
The Indian government is working on a much needed amendment of the existing Copyright Act that is being hotly debated within the industry in areas such as revised revenue sharing terms between copyright holders including music talent and film producers, among other issues.
In an interview, Glickman said that establishing an acceptable revenue sharing model between copyright holders was a "tricky issue but standards have to be put in place" especially in the light of MPA studio members getting more active in Indian film production in recent years.
Other amendments being lobbied for by the industry include anti-camcorder restrictions given that most piracy is fueled by illicit recordings by video cameras.
Summarising his observations on India, Glickman said, "One of the most fascinating things to note about India is that half the world's total cinema admissions (at over 4 billion) come from here (at over 2 billion). That only means that the U.S. and Indian film industries need to engage with each other even more intensely."