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MUMBAI:
The United States Business Council (USIBC),
which has a 40 member delegation present
at the ongoing Ficci Frames 2009, has released
a report saying that US India co-productions
and other forms of cooperation in the media
and entertainment sphere could generate
business that should reach $1.5 billion
a year for the next three years.
The
USIBC believes that the best is yet to come
and that 2009 will usher in a new spirit
of cooperation between the two countries.
However,
there are obstacles that have to be tackled
if the figure mentioned is to be reached.
USIBC notes that the uncertainty and inconsistency
of the Indian tax administration is a burden
to US and Indian businesses who want to
do deals here. There are tax issues related
to transfer pricing, downlink policy and
limitations on foreign direct investment.
In addition, the price controls in the television
industry all act as impediments to growth.
USIBC
also announced the launch of a new study
that will capture what counterfeiting and
piracy mean for an Indian filmmaker. The
study will be used in a public information
campaign against piracy. Last year the USIBC
had released a report in conjunction with
Ernst and Young which showed that India
loses 820,000 jobs each year in the media
and entertainment sector due to piracy.
Another
area of focus will be to ensure more cooperation
between the two countries in the areas of
technology and convergence in a manner relevant
to the media and entertainment industries.
This would bring about economic grwoth similar
to that which has occured in the field of
information technology assisted services.
USIBC notes that the convergence of film,
recorded music, television, radio, net etc
is the way of the future and dovetails with
the abilities of India and the needs of
the US.
USIBC's
Michael Dipaulo Coyle says, " Nowhere
is the new spirit of cooperation more apparent
than in the field of media and entertainment.
These industries serve as important cultural
ambassadors and spread the spirit of our
two countries abroad."
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