Depreciating value of rupee is not only a raging concern for the general public but more so for the booming Bollywood business. With a downfall in the Indian economy, the repercussions of it for all industries has largely been grim. However, it is hard to decipher whether Bollywood will lose more or gain higher by the prevalent economic scenario!
One of the most popular films in the last month, Chennai Express has earned over a 100 crores overseas. Garnering adulation as well as good moolah from the overseas market, the film has remained in the beneficial territory due to the dropping value of the rupee. The producers have earned greater from the overseas market. This is the foremost reason why the film managed to score above the earnings of 3 Idiots overseas though, the latter earned a whooping USD 25 million. But then again it will be a fallacy to say that this is an absolute win-win situation for the producers. While the returns indeed are higher, the investment amount will quadruple as well due to the hike in dollar price in terms of rupee.
Similarly, foreign locales will again be a hard reach for most Indian filmmakers. While late legendary director Yash Chopra popularized foreign locales in Indian cinema, filmmakers with a penny crunch will have to make do with local locales in order to save on the extra expenditure of travelling abroad. Picturesque locations of Europe might just become a distant fantasy, but there is a plus for it as we get to encounter more Indian locations on celluloid.
There is a theory that in times of economic crises, people usually resort to television and films for entertainment and that might be a good news for Bollywood in general. One can expect a greater demand for films and the viewership might soar due to the same. Theorists often term this as escapist tendencies of the masses to seek refuge in surreal during hard times.
Producers are the bunch who have the chances of earning heavy from the downslide, mostly because their earnings overseas will supersede the investment. Earning a higher quote because of the rupee downfall, the producers will get higher cash-in-hand than the money they had put in the film, in case the venture does well in the global circuits.
Another hitch that stays is foreign talent will become more unattainable. Be it SRK looping in International singer Akon for a song in his film Ra.One or makers of Akshay Kumar starrer Thuppakki Remake who have signed Greg Powell action director the last James Bond flick Skyfall, such instances will become more feeble in the days to come. Definitely the foreign singers or technicians are paid in INR, it is less likely that they will settle for a lower price. The lower rupee strikes, the hard it will be to hire foreign talent for Indian producers. However, the good side of the same is that budding Indian talent will get noticed. While it has been a trend to outsource work in the foreign hands, ignoring many able Indian artistes, the recession-like conditions might be a fertile situation for Indian talent to show their prowess as there is a higher chance for them to get noticed.
Economic changes are a mixed bag for Bollywood. The bigger production houses might not be deterred much but the smaller fishes in the sea might be affected very severely as their projects might find itself in wobbly situations! The only solace for Bollywood can be that stressed times can hope to find an increase in the audiences!
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