Digitisation led to hike in tax collection: Economic Survey

The Economic Survey has revealed that digitisation of cable television operations in the country has led to an increase in the tax collection with both the Centre and states becoming beneficiaries of transparency in subscriber base brought in by the measure.

The government has embarked on an ambitious exercise to digitise cable network in four phases and complete switch off of analogue TV services by December 31, 2016.

“As per the preliminary data, it is observed that Central and state governments have gained significantly as transparency in the subscriber base through digitisation has led to increase in the tax collection,” said the Economic Survey. “Digitisation, thus achieved, would usher a new era in broadcasting as it would enhance the viewing experience of the users and upgrade the service,” it added. India is the world’s second-largest television market after China, with 168 million TV households, implying a TV penetration of 61 per cent. Besides, India has also been experiencing higher volume of content consumption due to increasing per capita consumption, media penetration and use of 3G devices.

“DTH in India is also growing at a rate of about one million per year. HITS (headend in the sky) technology will play a key role in achieving the goal of 100 per cent digital distribution in India,” it added.

The government is also upgrading and modernising public broadcaster Prasar Bharati.

At present, there are 847 channels, 243 FM radio stations along with 190 community radio stations. India’s broadcasting distribution network comprises 6,000 multi-system operators (MSO) and seven direct to home (DTH) operators.

According to the survey, the media and entertainment industry is expected to reach Rs 1,96,400 crore by 2019.

Citing the Ficci-KPMG report, the survey said the sector was at Rs 91,800 crore and grew by 11.7 per cent to become Rs 1,02,600 crore in 2014.

India continues to be the world’s biggest producer of films, with more than 1,000 films each year in all languages and is expected to grow Rs 18,630 crore in the next two years.

“The size of the Indian film industry was Rs 12,640 crore in 2014. Domestic theatricals continued to be the main source of revenue for the industry, contributing Rs 9,350 crore. The industry is projected to be worth Rs 18,630 crore by 2018,” it added.

Besides, overseas theatricals also witnessed 3.5 per cent increase from Rs 830 crore in 2013 to Rs 860 crore in 2014. During 2015-16 (April-December), the government accorded permission for 25 foreign productions to shoot films in India.

In 2014, animation, visual effects, gaming and comics (AVGC) sector was estimated to be around Rs 4,490 crore with a projected growth of 13 per cent.