According to a preliminary report prepared by the Confederation of Indian Industry, the Indian entertainment industry has the potential to grow by 27 per cent in the next five years, with music and radio having the highest potential of growth of 55 per cent. The report also projects a 31 per cent growth for the television industry and 21 per cent for films in the next five years.
The major issues before the entertainment industry is the paucity of organised financing. The report has suggested tax incentives for private sector banks, venture capital funds and non-banking financial corporations (NBFCs) investing in films.
Trained manpower is another issue that needs to be tackled said the report. Other key recommendations include providing preferred industry status to TV software, special economic zones for TV studios, exemption of export income from TV software, lowering of import duty for equipment for recording and offering more frequencies per circle for FM channels and provision of bouquet of services per circle.
The report also says that anti-piracy laws should be made stricter and special anti-piracy cell in Indian courts should be provided.
The CII report has also said that India should be promoted as the uplinking hub for the South Asian region.
It has pitched for further liberalisation of foreign investment and also asked the Government to spell out the open architecture model for direct-to-home broadcasting.