News: FICCI moots growth strategy for film industry

(BL 12/07/2006) New Delhi - The Federation of Indian Chambers of Commerce and Industry (FICCI) has worked out a multi-pronged strategy to drive growth in the Indian film industry.

Outlining the strategy, the chamber said the industry required uniformity in entertainment tax across all States, Customs-free import of equipment and hardware, re-introduction of income-tax rebate for multiplexes, institution of a special fund to combat piracy, single-window clearance for film-shooting in the country and revamp of the archaic Cinematograph Act.

In a representation to the Planning Commission and the Government on the media and entertainment industry for the Eleventh Plan, FICCI has stated that the Indian film industry, currently valued at Rs 6,800 crore, is expected to grow to Rs 15,300 crore by 2010, with a compounded annual growth rate of 18 per cent.

Measures sought

According to FICCI, the long-standing demand of the film industry is shifting of entertainment from the State List to the Concurrent List through a Constitutional amendment. The chamber said there was a need to implement uniform tax policies across the country to attain standardised growth.

To provide impetus to the technological upgrade of facilities and infrastructure, import of the necessary equipment and hardware must be allowed without Customs duty, the chamber said.

It also urged the Government and the Planning Commission that concessions under income-tax be re-introduced to facilitate the sector's growth.

FICCI recommended that suitable incentives should be given for setting up polytechnics, institutes and film schools. It said that universities should include film, broadcast, event management and digital technology in their curriculum.

It also asked the Government to encourage the Indian Institute of Technologies (IITs) and the Indian Institutes of Managements (IIMs) to offer specialisation in media and entertainmen.