Screen expansion could create 1.25 lakh jobs, add Rs 950 crore in tax revenue: MAI–EY Report
According to a joint report by the Multiplex Association of India (MAI) and EY, there is a need to nearly double India’s screen count, alongside regulatory reforms, to revive growth in a sector grappling with declining revenues and limited screen penetration.
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The Indian film exhibition industry could generate 1.25 lakh jobs and contribute an additional ₹950 crore in tax revenue to the government exchequer over the next five years by expanding the country’s cinema screen count, according to a joint report by the Multiplex Association of India and EY.
The report noted that India’s total number of cinema screens has seen only a marginal rise, increasing from 9,527 in 2019 to 9,927 in 2024. During the same period, the country’s filmed entertainment revenue declined from Rs 19,100 crore to Rs 18,746 crore in 2024.
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To address this, the report recommended increasing India’s screen count to 20,000, supported by measures such as tax holidays for new screens in nearly 19,000 pin codes that currently have no cinema screens.
The report also called for deregulation of the cinema exhibition industry, particularly in ticket pricing, similar to the hospitality sector. It further suggested granting the exhibition segment industry status, allowing cinemas to pay electricity tariffs at industrial rates rather than higher retail prices, given power is a key operational cost.
Additionally, the report recommended allowing alternate uses of cinema theatres to tap into the rapid growth of live events, as well as permitting 24x7 operations to improve monetisation of cinema infrastructure.
Highlighting structural challenges, the report pointed out that screens per million population in India have declined from 7.6 in 2018 to 6.8 in 2024. This compares unfavourably with other major content-producing markets such as the US (109 screens per million), the UK (66), and China (64), underscoring the scale of opportunity for growth in India’s exhibition sector, added ET Retail report.
