Just two days remain as various sectors eagerly await what the Finance Minister has in store for them in the upcoming financial year. Finance Minister Nirmala Sitharaman will present the Union Budget 2025 on February 1. What the industry leaders expect is that the Finance Minister Nirmala Sitharaman to announce provisions to boost their individual sectors. Media and entertainment industry is no exemption.
The industry demands lowering taxes on movie tickets to boost people to cinema halls. According to the industry, people going out and watching movies in cinema hall has become very less as that of during covid period. They expect the government to focus on policies that drive growth in the advertising sector.
---Advertisement---
As per a report by Moneycontrol, Sanjay Jaju, Secretary of the Ministry of Information and Broadcasting, Government of India, recently highlighted the media and entertainment industry's current value of ₹3 lakh crore. He noted that the sector is growing at a pace much faster than India's overall economy. However, excluding the pandemic years (2020 and 2021), theatres experienced the largest decline in footfalls last year, with only 88.3 crore attendees.
---Advertisement---
What The Industry Wants From The Govt.
GST Rationalization: There is a call to rationalize the GST on cinema tickets, currently at 18%, to make going to the cinema more affordable and drive footfalls. This could help revitalize the cinema exhibition sector post-pandemic.
Incentives for Multiplex Construction: Financial incentives are needed to support the construction of multiplexes, addressing India’s low screen density and making cinema more accessible in untapped regions.
Single-Window Clearance: Streamlining licensing procedures through a single-window clearance system could ease operational challenges for exhibitors, enabling them to focus on expansion and service quality.
Support for Domestic Content Production: Introducing tax incentives or deductions for investments in domestic content production can encourage regional storytelling and boost local entertainment industries.
Advertising Spend Recovery: The advertising industry, particularly on traditional platforms like television, has faced a slowdown, largely due to reduced FMCG spending. A revival of the consumption cycle through the Budget 2025 is expected to boost ad growth.
Impact of Inflation on Advertising: Rising inflation and lower consumption demand have negatively impacted marketing budgets, especially for leading advertisers, making government support crucial for the health of direct-to-consumer industries.
Challenges in FMCG and Banking: Weak global economic cues, Foreign Institutional Investor (FII) outflows, and lower consumption trends are contributing to slowdowns in FMCG, while the banking sector is also facing challenges.