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Media Industry should have been given a boost in the budget: Dr Subhash Chandra

While Television is the largest player in the market, digital initiatives are rising across the board, connecting people who have hitherto remained unconnected from the advances in the Indian economy. The industry employs close to 1.2 million people, almost 50% of who are self employed.

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Dr.Subhash Chandra, Chairman Essel Group
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The Indian Media and entertainment industry is one of the fastest growing sectors in the Indian economy.

According to FICCI, the industry grew from Rs 821 billion in 2012 to Rs 918 billion in 2013, registering an overall growth of 11.8%. Given the impetus introduced by digitization, continued growth of regional media, strength in the film sector and fast increasing new media businesses, the industry is estimated to achieve a growth rate of 15.3% in 2014 to touch Rs 1059 billion. The sector is projected to grow at a healthy CAGR of 14.2% to reach Rs 1786 billion by 2018." 
 
While Television is the largest player in the market, digital initiatives are rising across the board, connecting people who have hitherto remained unconnected from the advances in the Indian economy. The industry employs close to 1.2 million people, almost 50% of who are self employed.

Before the budget, the industry had hoped for initiatives that would give a boost the sector, and make it competitive in both an Indian and an international scenario. The industry as a whole is facing multiple taxes – service tax, entertainment tax, import duties on Set Top Boxes. It also has to pay heavy license fees for DTH that ensures that few can compete, and those who do work with slim margins. Both  competitiveness and the ease of doing business in the media space is low. And, these have repercussions beyond just the growth of the sector.
 
Dr. Subhash Chandra, Chairman Essel Group, points out, "The third world war is and will be on mind share. Who controls the maximum mind share will be the winner of third world war. To my mind the war has been already begun and India is not participating yet."

He further added, "We look at traditional media of Television or Print. Even today whatever is broadcasted on BBC or CNN is taken as truth. In new media Google is ruling. When a primary or secondary school child or a teenager and adult youth wants to get a question answered, they log onto Google. Incase google reads “BalgangadharTilak( LokmanyaTilak) was a militant” ; they have no choice other than to believe it."

"Given that the Indian media not just brings news, information and entertainment to Indian homes, but acts as a window to India to those outside India and help build it as a soft power, it is important that the sector as a whole is given a boost," added Dr. Chandra.

Chandra further stated, "India will have no choice but to strengthen its reach to the humanity across the globe, for which the traditional as well as the new media will be required to be strengthened. This becomes even more important when this industry is growing and contributing significantly to the economy and employment generation."

"The Finance Minister will have to recognize that it is media industry which is a catalyst in digitizing India as well. We were expecting reduction of taxes in the 1st phase and expect to get same in the 2nd and 3rd phase." said Chandra.

It would be interesting to see how the FM would respond to the needs of the media and the entertainment industry that plays such a vital role in both nation building and in shaping opinions about India in markets outside.

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