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Government Plans Major Indian Film Industry Reforms: Prasoon Joshi-Led Panel Seeks Changes in Funding, Distribution and Cinema Infrastructure

The Indian film industry could be heading towards an important period of structural change as the Ministry of Information and Broadcasting seeks recommendations on how to strengthen the country’s cinema ecosystem. A high-level study group chaired by Prasoon Joshi has invited suggestions from filmmakers, producers, actors, distributors, cinema exhibitors, OTT platforms and other industry stakeholders.

The consultation, announced in November 2026, focuses on some of the biggest challenges facing Indian cinema, including access to finance, film distribution, cinema infrastructure, box-office transparency, international expansion and emerging technologies.

The initiative is significant because it looks beyond individual film releases and box-office records. Instead, it examines the business systems that support filmmaking, from raising production capital to bringing films to audiences across India and international markets.

For an industry that produces films in multiple languages and serves one of the world’s largest movie-going populations, these discussions could influence its long-term commercial development.

Why Has the Government Opened a Consultation on Indian Cinema?

The Ministry of Information and Broadcasting wants to understand the difficulties experienced by different participants in the film industry before developing recommendations for its future growth.

The study group was established following a high-level review meeting chaired by Union Information and Broadcasting Minister Ashwini Vaishnaw on June 29, 2026. Prasoon Joshi, Chairman of Prasar Bharati, was appointed to lead the group.

The ministry subsequently invited stakeholders to submit specific and actionable recommendations through a notice dated November 3.

The consultation is broader than a discussion involving major production houses. It includes producers, directors, actors, technicians, distributors, exhibitors, OTT platforms, industry associations, experts and other interested individuals and organisations.

This approach is important because the challenges faced by a small independent filmmaker may be very different from those experienced by a large production company or a multiplex operator.

By collecting views from across the industry, the government is seeking a more comprehensive understanding of the commercial and operational issues affecting Indian cinema.

Film Financing: Can Indian Producers Get Better Access to Capital?

One of the major areas being examined is film financing.

Producing a film requires significant investment in areas such as cast remuneration, production facilities, equipment, locations, post-production, visual effects and marketing. Independent filmmakers and smaller production houses may find it particularly difficult to secure reliable funding.

Traditional financing arrangements often depend on private investors, production partners, distributors and other commercial agreements. Access to institutional finance and alternative funding mechanisms can therefore become an important consideration.

The Prasoon Joshi-led panel is expected to examine how filmmakers can access institutional finance and what additional funding models could support production and distribution.

The issue also has implications for investors. Film financing involves commercial risks because theatrical performance, streaming deals and distribution revenues cannot always be predicted accurately.

A more structured financing ecosystem could potentially improve transparency and encourage responsible investment, although the actual recommendations will depend on the group’s examination.

Distribution and Market Access: The Challenge Beyond Making a Film

Completing a film is only one stage of the filmmaking process. Reaching audiences is another major challenge.

India has a diverse theatrical market, with films produced in several languages and distributed across regions with different audience preferences. A production may perform strongly in one territory but struggle to secure sufficient screens or distribution support elsewhere.

The government study group is examining distribution networks and market access as part of its wider review.

This includes understanding the challenges faced by filmmakers when taking their work to domestic and international audiences.

The discussion is relevant to independent cinema as well as large commercial productions. Smaller films may have limited promotional budgets, while regional productions can face challenges when trying to expand beyond their original language markets.

International distribution is another important area. Indian films already reach audiences in several overseas territories, but stronger market access, partnerships and promotional strategies could help expand their global presence.

The panel’s recommendations could help identify ways to improve this ecosystem. However, no new nationwide distribution policy has been announced as a result of the consultation so far.

Cinema Infrastructure: Why Smaller Cities Matter

Another important part of the government’s initiative concerns cinema infrastructure.

India’s theatrical market depends on the availability of screens, especially in smaller cities and rural areas. However, establishing and operating a cinema can involve several permissions and regulatory requirements.

The Ministry of Information and Broadcasting has identified differences in state-level cinema regulations as a possible obstacle to expanding theatre infrastructure.

Cinema exhibition falls under the State List, meaning states have responsibility for regulating cinemas and theatres. As a result, requirements and approval procedures can differ across jurisdictions.

In June 2026, the ministry announced that it had prepared Model State Cinema Regulations and circulated them to state governments for consideration and adoption.

These model rules are intended to encourage a more consistent regulatory approach and make it easier for states to facilitate cinema development, particularly in smaller towns and rural areas.

It is important to note that these are model regulations sent to state governments, not a single nationwide law that automatically applies everywhere.

If states adopt suitable measures, the initiative could support the expansion of cinema screens and improve access to theatrical entertainment in areas with limited infrastructure.

Box-Office Transparency and Reliable Industry Data

The study group’s agenda also includes box-office data systems.

Box-office figures are widely used to evaluate a film’s commercial performance. Producers, distributors, exhibitors, advertisers and investors often examine theatrical collections when assessing the business potential of a project.

However, figures published by different tracking services may use different reporting methods. Domestic net collections, domestic gross collections and worldwide collections are not interchangeable.

This can create confusion among audiences and make comparisons between films difficult.

A closer examination of box-office data systems could help the industry understand whether more consistent reporting practices are required.

Reliable information can also support better business decisions. Investors may benefit from clearer market data, while production companies and distributors can use dependable performance information when planning future releases.

The government has included box-office data among the subjects for consideration. It would be premature, however, to suggest that a new national box-office reporting system has already been approved.

Artificial Intelligence and the Future of Filmmaking

Technology is another major area in the government’s examination of the film industry.

Artificial intelligence and virtual production are changing several aspects of filmmaking. AI-based tools can assist with selected production tasks, editing workflows, visual development and other creative processes. Virtual production can combine physical sets with digital environments to create scenes that might otherwise require extensive location work.

These technologies may offer opportunities to reduce certain production costs and improve efficiency. At the same time, they raise questions about skills, creative ownership, employment and the responsible use of technology.

The original terms of reference announced in June specifically identified AI and virtual production as areas requiring examination.

The wider objective is to understand how Indian filmmakers can use emerging technologies while strengthening the industry’s competitiveness in international markets.

The panel’s work could therefore be relevant not only to established studios but also to smaller production companies and independent creators exploring new filmmaking methods.

International Co-Productions and the Global Reach of Indian Films

Indian cinema has an established international audience, but there is room to develop stronger commercial relationships with overseas markets.

International co-productions can create opportunities for filmmakers to work with foreign production companies, investors, distributors and creative professionals.

Such arrangements may help films access new markets, production resources and international audiences. However, they also involve contractual, financial and regulatory considerations.

The study group is examining international co-productions and ways to promote Indian cinema globally.

This is particularly relevant as Indian films compete for attention in an entertainment market that includes international streaming services, global film festivals and large theatrical releases.

Improving overseas market access could potentially help Indian productions reach more viewers and build stronger commercial partnerships.

The consultation also includes film festivals, incentives and skill development, indicating that the government is looking at several connected parts of the industry rather than focusing exclusively on theatrical releases.

Who Is Part of the Prasoon Joshi-Led Study Group?

The study group brings together individuals from different areas of the entertainment industry.

Its reported membership includes Prasoon Joshi as chairperson, National Film Development Corporation chairman G. Krishna Kumar, actor Kartik Aaryan, filmmakers Ashutosh Gowariker and Vivek Agnihotri, along with other industry professionals and representatives.

The Joint Secretary (Films) in the Ministry of Information and Broadcasting serves as the Member Secretary.

The inclusion of professionals from filmmaking, acting, production and industry institutions is intended to bring different perspectives into the consultation.

The ministry’s November invitation asks stakeholders to submit specific recommendations supported by relevant information wherever available. The latest notice does not specify a new deadline for submissions or an updated date for the group’s final report.

What Could These Reforms Mean for the Future of Indian Cinema?

The government’s initiative could become an important step towards examining the structural challenges affecting Indian cinema.

Better access to finance could support production opportunities. Improved distribution networks could help films reach wider audiences. More accessible cinema infrastructure could benefit smaller markets, while reliable box-office data could strengthen commercial decision-making.

The examination of AI, virtual production and international co-productions also reflects the changing nature of the global entertainment business.

However, the final impact will depend on the recommendations submitted by the study group, the government’s response and the willingness of relevant state governments and industry participants to adopt any proposed measures.

For now, the consultation represents an opportunity for the people working across Indian cinema to contribute directly to discussions about its future.

Rather than focusing only on the next blockbuster, the government is examining how the business behind filmmaking can become more sustainable, accessible and internationally competitive. The recommendations emerging from this exercise could shape an important conversation about the next phase of India’s film industry.

Gaurika Sharma

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