The Confederation of Indian Industry (CII) has projected a 20 per cent growth rate for the Indian entertainment industry till 2007.
The chamber said in a comprehensive paper on the industry that the higher growth rate would be fuelled by global interest in Indian products. It also said that Indian TV content producers have already made inroads into the Asia-Pacific markets.
The CII pegged the size of the Indian entertainment industry at Rs 19,000 crore in 2003, with a 15 per cent growth rate in 2002-03.
"There is a growing interest in broadcasters and distributors in the US and UK to look at India specific content. Revenues from TV contribute 70 per cent to the total entertainment revenue pie and this is expected to grow at a compound annual growth rate of 17 per cent over the next five years," the CII paper said, adding that the live entertainment segment grew by 60 per cent in 2002 and is expected to sustain the growth, given the right infrastructure and regulatory framework.
However, certain key issues hamper the growth of media and the entertainment sectors, the chamber said. These include inadequate infrastructure, lack of international co-production treaties and lack of representation of Indian companies at international events.
Other issues such as a restrictive regulatory framework, unfavourable licensing fee structure for private FM radio, lack of professional training institutes and multiplicity of service taxes also affect the industry, the CII paper said.
It also pointed out that there is a vast untapped pool of talent in the entertainment sector, which is deprived of formal training available to aspirants in other sectors including IT. The paper suggests that this talented lot must be given requisite training to equip them with skills to enable the industry to bring itself at par with global standards.
"Hence, while the information technology sector had been encouraged substantially, there is a need for incentivising private investments in media and educational institutions," the CII said.
The CII paper also stated that India had the potential to position itself in the global media and entertainment market. It said the Government must grant concessions to the privately funded and notified media and entertainment institutions.