Impact of Bollywood on the National Economy
Essay Preview: Impact of Bollywood on the National Economy
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Entertainment -holds the attention and interest of an audience, -pleasure and delight.In these modern times of instant digital communication, film has turn out to be one of the most vital way through various nations and cultures reveal their values and identities. Moving image technologies has turn out to be all encompassing in our lives.
Bollywood the mainstream Hindi language film producing industry . The largest producer of films in India and 13,000 cinema halls all over the country Around 1000 films produced every year. 100 million filmgoers every week
Expansion at global scale
Contribution -direct and indirect impact of the industry on the economy, considering the spending, income and employment generated However, the industry, and its effect on other related industries as well.
The key segments of the film industry include:
1. Hindi films
2. Indian television industry covering content production, broadcasting and Distribution
3. U.S. /International films in India.
Emergence of new sources of revenue:Global box office revenues of over US$30 billion in the year 2010.
Collaboration with international studios:
Potential to tap markets abroad :
Merchandising,a new revenue stream:
Government initiatives helping the industry :
Industry Status: In 2001, films were given Industry making institutional finance available.
Easing of FDI norms
Co-production treaties:
Film piracys impact
Indias film and television industry contributed an immense $6.2 billion (Figure of 2010-2011) to the Indian economy. Combined revenues of the Indian film and television industry =$7.7 billion (Rs 35,000 crores) in the calendar year 2010.
Expected to grow at a rate of 11% over the next five years, reaching a size of over $13 billion (Rs 60,000 crores).
The total value added by the film industry is taken as the sum of GVA as above (Rs 2,132 crore) and Net Indirect Taxes (NIT) paid.
The NIT paid by the film industry is estimated to be Rs. 800 crore (USD 1.7 billion).
Total Direct Economic Contribution (GVA + NIT) =Rs 2,931 crore (USD 645 million).
Total Contribution: Rs 3,914 crore as calculated. Thus, the economic impact of the Indian film Industry is estimated at Rs 6,846 crore (USD 1.5 billion) which is approximately 0.13 per cent of GDP.