India’s film industry, which generates approximately 40% of its overseas revenue from the United States, is grappling with uncertainty following a recent threat by President Donald Trump to impose a 100% tariff on all movies produced outside of the U.S. The announcement has sparked alarm among filmmakers, producers, and distributors in one of the world’s largest film industries, as they struggle to comprehend the potential impact of such a levy.
While details surrounding the tariff remain scarce, the lack of clarity has only fueled concerns. Anubhav Sinha, a filmmaker known for his Netflix series IC 814: The Kandahar Hijack, expressed the uncertainty surrounding the tariff, particularly regarding the definition of “foreign-produced” films. “The real question is how the term ‘foreign produced’ will be defined,” he said, adding that the possible impact on services like post-production remains unclear.
The Indian film industry employs 272,000 people and generated approximately 20 billion rupees ($237 million) in overseas box office earnings in fiscal 2024. These earnings account for about a tenth of the total revenue. Key Hollywood films featuring scenes shot in India include Slumdog Millionaire, Zero Dark Thirty, Eat, Pray Love, and The Dark Knight Rises. The United States, with its large Indian diaspora of around 5.2 million people, remains a crucial market for Indian cinema.
Film producers are particularly concerned about the economic implications of such tariffs. Madhu Bhojwani, a producer known for the hit film Airlift, pointed out that any increase in ticket prices due to the tariff could significantly affect audience turnout, especially at a time when the industry is already facing challenges related to evolving consumer behavior and broader economic factors.
India’s cost-effective production infrastructure, especially in visual effects and post-production, has made it an attractive hub for Hollywood films. According to Komal Nahta, a film trade analyst, approximately 10 to 15 foreign films are shot in India each year. He warned that the proposed tariffs could severely disrupt these collaborations, adversely impacting both the Indian film industry and Hollywood’s production costs.
Without clear guidance on the specifics of the tariff, the Indian film industry is left in a state of uncertainty, unsure of how the potential policy change will affect the critical U.S. market and its growing role in international film production and post-production.
