Indian film industry,which is projected to grow from USD 3.2 billion in 2010 to USD 5 billion by 2014,can grow faster if it deepens its cooperation with Hollywood,Ernst & Young has said.
Currently,the domestic film industry is growing at a compound annual growth rate (CAGR) of 14.1 per cent,the leading financial services firm has said in a report.
Film entertainment,visual effects (VFX),travel and tourism and film education have emerged as key areas in India and the film industry can witness an accelerated growth with a strong presence of Hollywood,said the E&Y-LA India Film Council’s report,’Film industry in India: New Horizons’.
The domestic filmdom currently competes with those in China,Japan,Russia and Brazil,it said.
There was a 42 per cent rise in the number of Hollywood movies shot in India between 2010 and 2011. While in 2010,19 Hollywood films were shot here,in 2011 it rose to 27. In China,the number rose to four in 2011 from two in 2010,and in Japan one English movie was shot in 2011 against nil in 2010,it said.
Four Hollywood movies were shot in Russia 2011 and 2010,while Brazil saw a dip to two 2011 from three in 2010.
E&Y India Partner and segment champion for filmed entertainment Rakesh Jariwala said,the domestic film industry is on the brink of a transformation as its trying to break across the barriers of language,revenue and technology.
At the same time,it has become an attractive destination for shooting,visual effects and animation. This presents a significant opportunity for Bollywood and Hollywood to collaborate,he said.
The report has identified four areas in which the collaboration can take place — film entertainment,education,VFX and tourism.
The increase in number of Hollywood movies shot in India is a very strong endorsement of the country’s potential in this space,according to the report.
“A greater collaboration between India and the US will result in increased film tourism,cultural and technological exchanges and boosting local talent,and most importantly,serve as a showcase on the global stage for Indian art,culture,history and talent.
“Perhaps,this is a beginning of a revolution similar to one we witnessed in the IT industry at the beginning of this millennium ,” Jariwala said.
Noting that there is a significant growth in the number of VFX companies operating here,he said according to estimates,there are over 40 major Indian VFX firms catering to domestic and global clients.
Currently,the country accounts for only around 10 per cent of total animation and VFX outsourcing pie. However,there is room for growth and the amount of work coming in here from Hollywood is on the rise,the Ernst & Young report said.
Another advantage is the availability of well-developed but low-cost post-production facilities,it stated.
In 2011,India’s travel and tourism sector contributed USD 1.7 trillion (or 2.8 per cent of the global GDP),which is expected to nearly double to 4.2 per cent (USD 2.9 trillion) by 2021.
Furthermore,the report said investments in the global travel and tourism industry are expected to grow at a CAGR of 5.4 per cent to reach USD 1.5 trillion by 2021 from USD 0.6 trillion in 2010.