The Union budget 21-22 was crucial for the Indian film and entertainment sector that has faced huge losses owing to the covid-19-led disruptions in 2020. However, the industry was overlooked was Finance Minister Nirmala Sitharaman as she presented the budget on February 1 and this has disappointed some of the film’s representatives.
Producer and senior film trade analyst Girish Johar says that the entertainment industry is like a ‘soft power’ that needs equal attention just like other sectors.
“I think in the past couple of budgets, there have been no mention or certain inclination towards the entertainment industry so disappointment is always there because we were expecting a relief,” he told Opoyi.
He further added, “Places like Europe and UK are giving a lot of reliefs after the pandemic to the entertainment industry. We all know that entertainment films and content is India’s soft power and we need to use that worldwide so an impetus was required but obviously nothing has been mentioned so it’s a little disappointing.”
Kailash Gupta, Chief Financial Officer – INOX Leisure Ltd too says that the budget this year was great for other sectors but there was no relief for entertainment.
“The Hon’ble Finance Minister has come up with a robust and aggressive budget with an extremely strong focus on Infrastructure and Healthcare, which would usher in more cashflows, and make the economy take rapid strides. The announcements on the Divestment as well as Capital Expenditure front will also bode well for the country’s economic status.
“However, we were hoping to see significant relief measures for the Film Industry, after the prolonged lockdown and a huge loss of revenues, which did not happen. We hope that the robust budget and the reforms aimed at pushing manufacturing and modernization increase personal incomes and subsequently induce spending on cinema and entertainment,” he told Opoyi.
According to the latest KPMG report, the film business in India is expected to contract by 67 percent over FY21. Also, around 1,500 -2,000 cinema halls, especially single screens, in the country had to shut shop during the lockdown in 2020.
Looking at the situation, representatives of India’s top multiplex chains along with BJP MP Sunny Deol met the Nirmala Sitharaman ahead of Union Budget and received an assurance that the government will certainly consider relief measures proposed by the industry, reports ANI.
Pawan Chawla, Director of P&M Movies Pvt Ltd, hopes that Government releases some press release with some announcement for their sector.
“We were expecting our Honourable Finance Ministry to speak on the Events and Entertainment industry but there were no views on the same. Hoping we get the details through a press release later in the evening, we expect a deduction in tax rates on the industry,” he told Opoyi.
So what is the plan ahead? To this, Johar said that 100 percent occupancy has come as a relief for the industry.
“Producers are making content across all languages and countries and something to cheer about was 100 percent capacity has been allowed in the cinema so I think everyone was gearing up for that. Now, we have to move ahead and I am surely hoping as the time comes government should recognize this and give some slots to the industry so that we are able to stand on our own feet,” he sumps up.