Growth stops

Until recently, year-on-year growth ran at 13%, but total revenue for 2009 will be flat, matching 2008's US$ 2.2 billion. Lack of investment capital, economic pressure, and the India Premier League has been blamed for the slowdown. Projecting forward things appear optimistic; estimated compound annual growth rate of 9.1% could mean market value of US$ 3.4 billion by 2013.

Production slows

As film costs double, commentators expect a sharp slow-down in film production. Ronnie Screwala, Chief Executive of UTV Software comments, "It's my prediction that nearly 30-40 percent of the movies made will not be released in 2009".

Film "powerhouse" of the future

With US films accounting for just 5% of revenues in India's lucrative market, the likes of Warner Bros - who describe India as being "a powerhouse of the future" - produce local films rather than rely on US talent appeal. Having bankrolled its first Indian product, "Chandni Chowk Goes to China", starring Akshay Kumar, they have announced a three-picture film with People Tree films.

Rupee reliant Hollywood

While market entry is top of mind, US film industry already relies on the Rupee. Reliance Big Entertainment has extended its billion-dollar investment in US films by adding to their 'A list' stable. Co-finance agreements with Julia Roberts and a partnership with Steven Spielberg's Dream Works studio have been agreed.

Global export push for Film India

With fresh interest in Indian cinema from abroad Government looks to help the industry tap new markets. Minister for Information, Broadcasting & External Affairs, Shri Anand Sharma recently announced an initiative to encourage the industry to participate in global film festivals. In addition supportive audio-visual co-production agreements are to be signed in Italy, UK, Brazil and Germany.

With Government support, increased global influence and newfound global respect Indian film industry may be well positioned for global breakthrough.