Also, the recognition that entertainment is a sunrise industry, and can have a huge contribution to make to the country's economy is important." The finance minister stated in his speech that the entertainment industry had the potential to emerge as a global media centre. Filmmakers and music companies had used Sec 80HHC to get exemption for their export earnings, but two years ago, the income tax department disallowed thisclaiming that films and music did not comprise merchandise and therefore were not eligible.

The finance minister's decision to include films and music has given them the same status as other exporters, which Khanna feels will give a big boost to exports. The exemption has become extremely important, following the phenomenal success of local films abroad last year. According to trade magazines, films such as Kuch Kuch Hota Hai were huge successes in cities like London and New Jersey, which have large Indian populations.

In fact, Dil Se, which bombed in India, was a fair success abroad. Now distributors will rake in higher returns on their sale of film tickets abroad, a move industry insiders say will also encourage them to spend more on publicity and post production matters. Although this demand of the film industry has been met, expectations were slightly higher. A month ago, the industry had sent a memorandum asking for parity with the IT industry.

Arguing that the export potential was enormous, itsaid that nature of work in the film and music industry was very similar to IT companies involved in software exports. It was, they claimed the sale of intellectual property, and incentives must be given to encourage the entertainment industry.