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Editorial -- A long way to go
The Indian film industry is a chaos. Not many corporate entities, no rated debt programmes, very few IPOs, no corporate governance, no sound business models, no comprehensive insurance cover, no finance for working capital, no venture or institutional finance. Well, it is a long list. The stifling star system, rampant piracy and thriving usurious film financiers have only helped matters worsen. Corporatisation is the first step towards reforming the industry. For, it means professionalism and transparency. And film-producing entities need to diversify across the entertainment value chain. That is the only way to make the project-specific Indian film industry players develop integrated business models and have sustainable cash flows. Only then, venture capitalists and banks would come forward to finance film making. And the RBI should define the film industry in broader terms so that it fits into the new paradigm of convergence. Alongside, state governments should rationalise entertainment taxes. Is that asking for too much?
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