New Global Strategy For Bollywood Film Projects
The Reserve Bank of India (RBI) has announced that it is time to raise the official target rate for the convertible foreign currency reserves by 50 basis points to USD convertible foreign currency. This move is seen as an important step in stabilizing the economy of the third world country. Whether or not this move by the Reserve Bank of India will have a significant impact on the Indian economy remains to be seen.
Besides, there is no chance that the move will affect the Indian film industry. According to the Reserve Bank of India, the reasons behind such a move are that a substantial portion of the surplus monies, which are generated by the Indian market, go into the military sector. “So it is natural for the defense ministry to use these earnings for its own purposes”, the bank noted. On the other hand, according to a top executive of one of the biggest movie producing companies in India, producer Suicides Command, “We have always been worried about the fiscal crunch in our industry and this move by the Reserve Bank of India will definitely help our producers in balancing the books”.
There was a time when the Reserve Bank of India ignored requests from foreign film production facilities to reduce the payment rate and to allow additional release of goods in Indian cinemas. At that time the requests were viewed as a shot at the survival of the ufa industry which was reeling under heavy foreign direct investment. However, with increasing pressures on the ufa fraternity, the Reserve Bank of India has now reversed its decision and is trying to encourage more foreign producers to start producing their movies here. The bank has also offered further assistance to the manufacturers if they adopt suitable measures to increase their production facilities and increase employments in their four key film production facilities in India.
In another development, the Reserve Bank of India has approved a plan to allow German companies to make Bollywood movies and to utilise its new Bollywood set-up. The decision was taken in view of Germany’s growing demand for Bollywood movies and success of such movies at the box office. The Reserve Bank of India has also given a green signal to the German consulate in India and has offered them official support. According to a top Indian production company, who did not want to comment on the subject, “The r&D department of the German consulate is yet to finalize a deal, but we believe that it is a positive step in the right direction. If they can get foreign investors, then that will be great for Bollywood”.
The decision to allow German companies to make Bollywood movies comes in light of the present economic situation where the German economy is showing signs of weakness. The fall in the G7 economies coupled with the problems in Greece have had a negative impact on Germany’s status as a global actor and as a producer of movies. The gumbo is the main agency in India which provides state-of-the-art Bollywood production facilities and co-ordinated with the producers.
There are many possible investors who could fund a project through ufa. According to people involved in the film industry, four to five ufa investors are looking into making a specific film which is based on a global theme. This could be an independent film or a joint venture film between two ufa investors and a film production company. Since the ufa system ensures that only big shots are selected from small Indian producers, it is expected that this new trend of selecting Indian films for global audiences will become extremely popular.