Indian media industry to hit $100 bn revenue by 2030: Google India's Gupta

Calls for simplifying taxation framework for media and entertainment sector, infrastructure status and support to accelerate exports of films and games

The Indian media and entertainment industry could reach $100 billion by 2030, said Sanjay Gupta, country manager and vice-president of sales and operations at Google India, on Tuesday. 

“This is a moment for us as an industry to usher in a fundamental shift in the way the M&E sector works and is perceived by the world. I believe and all of us in the Ficci M&E committee believe that we can be a 100-billion-dollar industry by 2030,” he said at a session of the Federation of Indian Chambers of Commerce & Industry (Ficci)'s Frames event.  

Talking about the impact on the media and entertainment industry due to the coronavirus-related lockdown, Gupta, who is the chairman of Ficci's Media and Entertainment Committee, said the industry revenue this year was likely to fall to $15 billion from $20 billion last year. 

"An even bigger challenge is the impact on jobs and the livelihood of those impacted. As we find ways to adapt to these new levels, it is estimated that around 20 per cent of our workforce may lose their jobs, potentially impacting nearly a million people," he added.

However, he urged the film industry to think beyond creating just for the domestic market. "When it comes to films, India gets less than seven per cent of its revenues from overseas markets. Hollywood, in contrast, earns almost 70 per cent from the global markets. Despite years of applause for Bollywood from various corners of the world, we have still not managed to create a truly global market for our creative work," Gupta said.

He further suggested forward looking policy initiatives like simplifying the taxation framework for the media and entertainment industry, adoption of a light-touch regulatory approach, infrastructure status to the industry and support to accelerate exports of films and games.

“In the short term, we do need to expedite some of the policy decisions which can help in the sector's recovery. We need to possibly resolve some of the critical issues like tax burden on DTH and radio. We could also look at allowing theaters to be used for multiple activities like showing sports games or educational activities to maximize capital utilization and looking at local taxation to see if we can eliminate it. Broadcasting sector will benefit by ensuring light touch regulation. We can also think of using CSR money for advertising products and services which are beneficial to society today in these unique times. In my mind, it is not about giving cash benefits, but enabling the industry to continue on the recovery path,” Gupta said.