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Indian Film Industry

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INDIAN FILM INDUSTRY ANALYSIS(growth)
The Indian Film Industry has been one of the oldest segments of the Indian entertainment industry. The Lumiere Brothers brought motion pictures to India in 1896, and since then there has been no looking back. Today, India has the world's biggest movie industry that churns out around one thousand movies each year. The Indian Film Industry is witnessing mark improvements on all spheres - from the technology used in making films to the themes of the movies, exhibition, finance and marketing and even in its business environment. There is no doubt that the Indian Film Industry is finally getting corporatized in that sense. 2005 was a watershed year for the industry. Indian Film Producers are also looking …show more content…

This has however not been the case with the rest of the states in India. Therefore, to avoid market fragmentation and distortions, a uniform and rational tax structure is required for the growth of the film industry.
The funding of films either through non-banking finance companies, venture funds, corporate funds or through corporate finance, was a significant shift from the traditional film- financing model. IDBI was the first to start funding film production, that too, to big banners, big names and established film-personalities. The traditional model used amongst others distributors funds, personal finances of producers, money lenders. Obviously, there were inherent drawbacks attached to these modes of financing.
Moreover, even banks are not forthcoming in financing film projects. Therefore, venture capital and private equity investment was clearly seen as a solution based on their appetite for risk and a conducive legal framework.
Under the applicable law in India, there is no restriction on private equity investment into film making directly, without routing it, via venture capital regulations as venture capital. However, there are issues involved with such direct (non venture capital regulations routed) investment, which they could avoid by operating via applicable venture capital regulations.
Corporatization of the Indian Film Industry has led to increased

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