Contribution Of Bollywood Industry To The Indian Economy

By:B2B Desk 2018-07-27

“Bollywood”, it is an art and a business. Might sound a bit oxymoronic in nature, but does art actually find its recognition without business? Of course not! Bollywood is a blooming industry of Indian cinema that thrives on this mantra. It is undoubtedly a major, sensational and one of the largest industries in India.

Our country has got her independence only seventy-one years ago, and is still climbing the steps to be labeled as a “developed country”. Now, in a situation like this, a massive industry has lots to do for the country’s economy. Bollywood is strongly established in Mumbai and for several years it has been in an active forefront.

What Is The Scene?

With numbers of movies being released every year, Bollywood is indeed doing a very well sorted business. Although sometimes it’s hidden behind the glory of Hollywood, but in India you do find one of the largest movie capitals throughout the world. With the 100 crore trend in action and several of the movies living up and even exceeding the expectations of the audiences, Bollywood’s entertainment is a huge topic and related to it is its contribution to the nation’s economy. Recent news says that it contributes 50, 000 crores for the welfare and benefit of the nation.

When talking about the plurals, we cannot just ignore the singular pillars. The actors, more they succeed, the more they pay taxes which indirectly add to the growth of Indian economy. The amount leads to 0.5% of GDP in 2013. The report was made by the financial services of Deloitte and titled under “Economic Contribution of the Indian Motion Picture and Television Industry”. The sector does not only add up to the country’s economic growth or helps in stabilizing the financial structure but also supports 18.8 lakh jobs.

From actors, directors, makeup artists, back up dancers, assistants of every sort from small to big, this industry is thriving with opportunities. Another report says the total gross value added has crossed 15% in 2009, which directly exhibits the fact that it has a relevant significance to the Indian economy which cannot be ignored. The report also stated that the scale could have increased if the contents were more secured and the complicated taxation process reviewed and changed, if necessary.

What Does Eminent Personality Say?

The Managing Director of Disney India, Siddarth Roy Kapur has said “The year 2013 has been an interesting one for the Media and Entertainment industry. For Filmed Entertainment it has been another year of strong growth for the theatrical business, which still accounts for the lion’s share of overall revenue.

For Television, it has been a wait and watch year, driven by changes in the regulatory environment, a new ratings system on the anvil, an overall slowdown in advertising growth and finally, a mixed report card with digitization with lower than expected growth in DTH subscribers balanced by positive signs on carriage fee reductions.”  The FTPGI president Mukesh Ambani said “This is an important report that recognizes the contribution of our thriving film and TV industry to the Indian economy.

Creating a business environment with a unified tax structure will help infuse growth in this sector, which is currently affected by an array of taxes levied at every stage of film production, distribution and exhibition.” Frank Rittman, who is the MPA Asia Pacific svp, deputy MD and regional policy officer made a rejoinder saying that the industry has understood its real potential and capability only in recent years. What has been a restriction so far in the growth would now be turned into an advantage with time and experience.

 

Can Bollywood Live Up To The Expectations?

Frankly, in 2012 the industry alone has produced 1,602 films which have crossed the 476 films by the United States and 745 by China. Even in the calculation of tickets being sold, Bollywood is a clear winner. The industries 2.6 billion is a cause for massive celebration against United States’ 1.36 billion only. However, to compete with Hollywood in terms of box office revenue would be a foolish task since the country’s value of money differs distinctly from that of India. However, to the desi people, these figures are not a matter of concern.

In numbers, they flood each time to the theatres to entertain themselves. Bollywood produces movies of every type and taste – movies that are relatable to some at least in more ways than ever. While sometimes they love, they even hate a few. But, that is probably a part of life and Bollywood opens its heart to every comment and struggles for betterment. And guess what, the biggest success is when people of even the lower strata crowd before cinema halls if not the multiplex.

This has, however, a stake in the bigger structure – the prevalent class discrimination and deprivation of rights of the poor is reduced. Although still unable to afford the high prices of multiplex cinema halls, they can at least enjoy the same privilege of watching a movie that is watched by billionaires of the country.

Business Outside India

Being a flourishing industry, Bollywood has made it to the global markets and is earning a lot through the exports. In 2007, the exports were increased up to 60%, the United States and Canada being the major destinations for export. And it all sums up to the development of Indian economy, adding to its welfare and growth.

Economic Achievements

Bollywood rightly represents the 40% of India’s income and surprisingly, the annual growth rate is between a good 10 and excellent 20%. Various critics have marked this industry to be the second most useful domain for the development of India. Back in 2009, 15% of the total revenue count in India was from Bollywood. Reports claim that in the entertainment market of United States, Bollywood is the biggest exporter, the successful movies being run in up to 75 screens in the US.

There is no doubt left as to how much Bollywood has hand in increasing Indian economy. May the industry spread more in coming years.

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