There is no denying that the film industry is doing well. However, it has more to do with the content being offered
At a press conference recently, Union Minister Ravi Shankar Prasad said that the Indian economy must be sound as three films -- War, Joker and Sye Raa -- earned Rs 120 crore in one day.
Prasad quoted film trade analyst Komal Nahta who had pointed out that on October 2 -- a national holiday -- three films had got strong returns.
Citing box office collections of the three films, the union minister had dismissed indications of economic slowdown in India.
Can success of Bollywood films indicate that all is well with the Indian economy?
There is no denying that the film industry is doing well. However, it has more to do with the content being offered. People going to the theatres is a good sign for the movie business, but that cannot negate what is happening in other sectors like auto, where people have lost jobs.
It is true that the film industry has shown time and again that it is immune to economic turmoil. In fact, actor Shah Rukh Khan draws comparison of movie business to ‘lipstick index’ which is a term coined by Leonard Lauder to describe rise in cosmetic sales during the early 2000s recession.
Even in 2008, Bollywood had managed to buck the recession with the industry recording a 7.7 percent growth during that year.
In addition, PVR Pictures’ Chief Executive Officer (CEO) Kamal Gianchandani in a recent interview had said that slowdown is helping the cinema business as there is negativity around and people want to escape it. As a result, footfalls increasing in theatres is not an indication of a sound economy.
The social media space exploded with comments and suggestions after Prasad’s statement.Dhruv Rathee, a popular social media user, tweeted that old super hit films like Sholay, Lagaan, Gadar should be re-released to reach USD 5 trillion economy. “All these films will earn so much money, our economy will recover in no time,” he added.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.