The entertainment industry in India has outperformed the economy and is one of the fastest growing sectors in India. However, it registered a moderate growth of over 6 per cent in 200.The industry is expected to grow from Rs. 166 billion (U.S. $ 3.45 billion) to Rs. 419 billion(U.S. $ 8.72 billion) by the year 2007. Film entertainment is the most popular form of entertainment and it is this undiminished passion through the decades that has driven India to become the largest producer of films in the world. Since 1931, when talkies were introduced in the country, the film industry has produced more than 67,000 films in more than 30 different languages and dialects. The film industry recorded a loss of Rs. 3 billion (U.S. $ 62.5 million) in gross revenues of Rs 39 billion (U.S. $ 812.5 million) in 2002. But, it is expected to grow annually by 19 per cent to reach Rs. 93 billion (U.S. $ 1.93 billion) by 2007. The industry produced 1200 films in 2002, and 1,013 films in 2001, up from 855 films in 2000. While Hindi films continued to be the largest segment in 2001 (23 per cent share), south Indian language films (Telegu, Tamil and Malyalam) have seen growth in their shares.
India's movie industry is a great sector for foreign investment by corporatized entertainment companies. Though risks are high on a per-movie basis, the risk spreads out across a number of films. However, the domestic filmmaking industry, despite its profligacy, is yet to acquire the character of professionalism on a large scale.
BRIEF HISTORY OF INDIAN MOVIE INDUSTRY
When the Lumiere Brothers' first films were shown at Bombay's Watson's Hotel in 1895 or when Dadasaheb Phalke released his epochal feature film Raja Harischandra in 1913, it is unlikely that either the exhibitors or the pioneer film maker realised they were unleashing a mass entertainment medium that would hold millions in sway for the next hundred years; that they were spawning an...