CHAPTER EIGHT

What needs to change with regard to funding in India to make It attractive to local and international partnerships?

SUMMARY

India has the potential to become a global content hub, but realising this vision requires building a transparent, structured and supportive financing ecosystem. Focusing on quality-driven projects, simplified processes and bold investments in both mainstream and independent content will attract stronger international collaborations and boost the industry’s global competitiveness.

Key Funding Challenges

• Limited private funding and VC investment focused specifically on entertainment.
• Lack of understanding around distribution, deficit financing and structured funding models.
• Insufficient government-backed incentives and facilities.
• Upfront investment in development and writing remains low, reducing content quality and international appeal.
• Complex, non-transparent funding processes discourage local and foreign investors.
• Weak legal frameworks for investment protection, contract enforcement and IP rights.
• Lack of dedicated funding bodies supporting content creation across formats and languages.

Necessary Changes

1. Transparency and Standardisation

• Implement standardised accounting, clear reporting guidelines and transparent fund allocation to build trust.
• Introduce risk-sharing mechanisms, insurance frameworks and predictable ROI structures.
• Increase reliability and accountability in funding practices, especially in rebate disbursements.

2. Stronger Legal and Investment Frameworks

• Strengthen IP protection, dispute resolution mechanisms and legal enforcement.
• Streamline foreign direct investment rules for easier cross-border collaboration.
• Reduce bureaucratic hurdles related to permissions, visas and customs clearances.

3. Government Incentives and Support

• Expand tax breaks, production subsidies and rebates – especially for regional, independent and coproduced content.
• Create categorical and genre-specific subsidies (e.g. for children’s content, documentaries, regional narratives).
• Launch government-backed development funds for producers entering international coproductions.

4. Private Sector Engagement

• Encourage venture capital, private equity and institutional investment into entertainment and digital content.
• Support indie filmmakers and mid-budget productions through diversified funding options beyond studios and platforms.
• Establish structured film/media investment funds and pre-sales/gap-financing ecosystems.

5. Focus on Quality and Innovation

• Prioritise funding based on the strength of the script and creative vision rather than star power alone.
• Move towards a ‘less is more’ mindset, focusing on high-quality, globally relevant storytelling.
• Increase funding for digital-first projects (OTT, web series, shortform content, interactive formats).

6. Attracting International Productions

• Launch structured rebate programmes targeting foreign productions, similar to successful models in Canada and Korea.
• Sensitise foreign companies to Indian cultural requirements and ensure smoother production experiences.
• Offer streamlined approvals for coproductions and faster access to subsidies.

7. Institutional Development

• Create dedicated film and media financing institutions to simplify access to capital.
• Expand the reach and understanding of central government incentive schemes in collaboration with state bodies.
• Ensure banks provide better facilities to local producers, reducing the cost of capital.

Strategic Recommendations

• Build structured, transparent financing models aligned with international standards.
• Strengthen legal infrastructure for investment security and IP rights.
• Expand government incentives with categorical support for diverse content types.
• Encourage private sector funding through VCs, PEs and corporate investors.
• Streamline bureaucratic processes to improve ease of doing business for local and international partners.
• Support indie and regional creators through accessible grants and coproduction funds.
• Focus on quality over quantity, aligning with global content consumption trends.
• Enhance promotion of incentives internationally to raise awareness among global partners.