Producers Arjun and Kartk hope that the Budget will make provisions for larger investments in R&D!

According to a report by Ernst & Young, the M&E sector in India is expected to grow at a CAGR of 13% to reach INR 2.3 trillion in 2024. Last year in November, India also announced an increase in filming incentives for international productions from 30% to 40%. As the date of the 2024 Budget inches closer, there is widespread hope that production-linked incentives (PLI) will also be given to the homegrown entertainment sector to keep the growth momentum growing.

Arjun and Kartk, co-founders of well-known production house GSEAMS say, “India’s entertainment industry is a global soft power but can grow even more profitable if aided by tax sops and incentives. These can help to substantially decrease production costs.”

They also point out that the industry is competing with foreign players in the global marketplace. “The industry could benefit from supportive infrastructure as it strives to create world-class content. We hope that the Budget will make provisions for larger investments in R&D and infrastructure to support cutting-edge innovations in film technology. This will also help nurture the next generation of filmmakers,” add Arjun and Kartk.

The incorporation of technical tools such as Gen AI in the entertainment sector also has the potential to streamline creative workflows, helping in the development of more innovative content. “However, as the adoption of additional AI tools increases, challenges related to business models, privacy, intellectual property rights, and ethical considerations are expected to evolve. Therefore, the provisions for a regulatory policy on the use of AI would be beneficial for the industry,” they conclude.