M&E looking at Govt to open its can of goodies this Budget season: Harikrishnan Pillai

The M&E industry, as in the case of several other industries, saw a very turbulent period in 2020, fuelled by the global pandemic. Hence, as India unlocks and enters the new normal, expectations of a growth supporting package are high from the Union Budget 2021-22, which will be presented by Finance Minister Nirmala Sitharaman on February 1, 2021.

According to Harikrishnan Pillai, CEO and Co-founder, TheSmallBigIdea, “All industries, including Media & Entertainment, will look at the Government to open its can of goodies this Budget season. On the top of the list will be, like in all years, ‘tax relaxations’. Running along tax relaxations will be the demand for ‘reduction on import duties for capital goods’ used for production or transmission of content. ‘A more amicable FDI regime’ will feature in the list too, as fresh infusion of foreign money will help make up for the tough 2020.”

Pillai further said that the Government should proactively also look at ‘incentivising international films or content creators’ to shoot content in India, in an attempt to assist employment and increase revenues generated from assets like studios, especially for animation content. “Considering the creative affinity and technology talent available in India, it can poise itself to be the ‘post-production hub of the world’. Tax reliefs for revenue such made, can attract global film makers to create in or outsource work to India,” he added.

Though a stretch, Pillai said that there will also be expectation for the Central Government to work with the State Governments for state-led waivers like property tax, electricity, etc., for theatres and studios.

Also read:

What the M&E sector wants from Budget 2021: Deloitte India

Budget 2021-22: M&E wants Govt to demystify Equalisation Levy issues