M&E sector seeks industry status in run-up to budget

The media and entertainment (M&E) sector, through the Confederation of Indian Industry, has sought industry status, besides demanding infrastructure status for broadcasting, ahead of the Union budget to be presented on 1 February.

The M&E sector has the potential to reach $100 billion by 2030, CII said on Tuesday. The sector has been growing at a gross annual rate of 13.5% for the past several years and has the potential to provide millions of jobs and boost India’s export performance. Getting industry status will help the sector get cohesive policies, special schemes and subsidies, the pre-budget memorandum added. Also, within the M&E sector, CII sought infrastructure status for broadcasting as it needs significant support to get access to funds at a lower rate for laying cables, and building and maintenance of towers.

Under the direct tax recommendations, CII has sought a change in withholding on royalty payments towards non-theatrical rights. It said that non-theatrical rights of films such as those for digital and satellite platforms are currently subject to a 10% tax.