MACRO ECONOMIC IMPACT OF BOLLYWOOD IN INDIA

Presented by: Rupinder Singh Neha Gupta Suraj Kumar Pulkit Gaba Rahul Bhalla (FE 2)

Macro-economic Impact of

Bollywood in India

WHAT MAKES BOLLYWOOD SO SPECIAL? World's largest producer of films. In

2009, India produced a total of 2961 films on celluloid, that include a staggering figure of 1288 feature films.

Largest audience from all over the world

Sharukh, Amir, Shilpa, Aishwarya, Amitabh among most favoured actors abroad

SALIENT FEATURES OF BOLLYWOOD

Largest in the world in terms of ticket sales and number of movies produced annually

Popularity increasing after globalisation Part of revenue comes from Grade-B

movies and down

ECONOMICS OF BOLLYWOOD Movie tickets in India are the cheapest

in the world More than 14 million Indians go to the

movies on a daily basis and pay more than average Indian’s daily wages(US 1$ - 3$)

The industry has clocked revenues of around Rs 89 billion in size in 2009

ECONOMICS OF BOLLYWOOD CONTD. Over the next five years, the Indian film

industry is projected to grow at 9% and reach the size of Rs 137 billion by 2014 according to the FICCI-KPMG 2010 report

Nearly 70% of TV revenues are based on films and film-based programmes

Stars help make brand grow by promotion campaigns

ECONOMICS CONTD. The industry provided employment to

more than 18 lakh people during 2008-09

Combined revenues of Indian film and television industry was Rs 28,305 crore for the year 2008-09(net direct taxes comprised of Rs 800 crore), which approximately constituted 0.532 per cent of the GDP of the country

BEHIND THE SCENES Regional cinema has experienced a huge

growth recently. Box office collections from regional films are estimated to be Rs 1,508 crore

US-international film industry is contributing Rs 304 crore to the Indian film industry and accounts for 14,000 jobs

Tourism sector benefits largely from bollywood(Goa-Dil Chahta Hai, Kashmir-Mission Kashmir)

BEHIND THE SCENES Investment in playback singers rather

than actors taking music lessons; presence of item numbers in commercial movies

Promotion through films, eg. Nescafe, Coke, etc

100% free FDI in media sector Film stars are used as protagonists for

growing industries of animation and gaming

CONCLUSION

Corporatization takes bollywood to a higher level

Video piracy, which accounts for a loss of about $960 million at present day, should hopefully be reduced

THANK YOU…