The growing recognition for Indian entertainment, especially films, in UK is paving the way for a sound business association between the two countries. This has become more pronounced following the listing of four Indian Film production companies on the London Alternate Market for investment, AIM.AIM, the alternative market for London Stock Exchange, is one of the world’s leading, for growing companies. Launched in 2005, it has emerged as an alternative to venture capital firms and about 2000 companies are now a part of it. The simple regulatory requirements have been an incentive for many small companies to raise funds here.
Four Indian productions companies namely, The Indian Film Company, UTV Motion Pictures, Eros International and The AB corp., have raised funds from the market. The move seems logical, given the fact that after India, UK is the largest source of revenues for Indian Films. Bollywood (Indian Film Industry) has lately seen tremendous success in UK.
Following cue, many other Indian industries from other sectors are also planning to list on the AIM. It is speculated that about 20 more Indian companies will join the market by the end of 2007.The business environment in London, particularly its growing stature as the financial hub, along with the quality of infrastructure, availability of skills is now attracting the Indian capital in a major way. Its geographical position gives it a favourable position for trading, as it is located between Asia-Pacific and United States. The rate of increase in the FDI in London has been about 37% in the past two years.
After USA, which is the largest contributor of foreign capital, India comes second, followed by France, China and Japan. This clearly indicates the rapid rise in Asian economies in the past few years. Indian investment alone shows a whopping increase of 53% in UK in the past one year.
Apart from these business connections, the cultural affinity between India and UK gives a very positive impression. Yorkshire played host to the popular IIFA (International Indian Film Academy) awards, comparable to Oscars of Hollywood. To celebrate the growing interaction with India‘s growing economy and popular culture, London was the venue for three month festival called ‘India Now’ in July.
According to a research, the global media and entertainment industry is expected to touch $2 trillion by 2011 with an annual growth rate of 6.4 percent. The key markets for rapid growth have been identified in Brazil, Russia, India and China. The sector obviously seems to be luring more investment and development by the day.
It is evident that the growth in the Indian Entertainment Industry, by virtue of its acknowledgement in UK, is bound to see unprecedented expansion.