"these tariffs would directly affect audience turnout"
India’s film industry is facing serious concerns after US President Donald Trump threatened to impose a 100% tariff on all foreign-produced movies.
Around 40% of the industry’s overseas revenue comes from the United States. Any additional levy could damage profits and limit growth.
Producers and distributors are struggling to understand the full impact due to a lack of clarity from the Trump administration.
Anubhav Sinha, director of IC 814: The Kandahar Hijack, said:
“The real question is how the term ‘foreign produced’ will be defined, and until that’s clear, it’s hard to say anything.
“It’s not yet clear whether services like post-production will be affected.”
India’s film industry generated about 20 billion rupees (£178 million) in overseas box office earnings in 2024. A tenth of that came from the United States.
The industry employs over 270,000 people, many of whom could be affected if exports decline.
Producer Madhu Bhojwani, whose credits include Airlift, warned:
“The United States is one of the most important overseas markets for Indian cinema, largely due to the substantial diaspora.
“Any increase in ticket prices resulting from these tariffs would directly affect audience turnout, compounding the challenges posed by evolving consumer behaviour and broader industry headwinds.”
Approximately 5.2 million people of Indian descent live in the US, forming a major audience base for Bollywood films. A drop in turnout could have knock-on effects on future production plans.
India is also a key location for Hollywood shoots and post-production work.
Foreign films such as Slumdog Millionaire, Zero Dark Thirty, and The Dark Knight Rises have all been filmed in India.
Trade analyst Komal Nahta said: “Almost 10 to 15 (foreign) movies are shot in India every year, and our movie industry will be impacted very badly.”
Actor and producer Prakash Raj described Trump’s threat as “tariff terrorism”.
If the tariff extends to post-production, the consequences could be worse.
Bhojwani said: “We can expect a potential decline in outsourced work from US studios to Indian vendors, which could have notable implications for the Indian media services sector.”
Pradeep Dwivedi, chief executive of Eros International Media, said:
“If revenue from the US drops, it could affect budget planning and profitability for Indian production houses.
“Big-budget films counting on overseas revenue could be restructured or scaled back.”
Mid-budget and regional films may suffer the most.
Raj Kandukuri, producer of Telugu film Pelli Choopulu, said:
“Even a 30% drop in revenue for such mid-scale movies would be a significant dent.”
“There are a sizeable number of students in the United States who watch movies, they will not spend high on ticket prices.”
Distributors may also rethink their plans.
Dwivedi added: “US distributors might be less inclined to pick up Indian titles due to the increased cost.
“This could result in fewer screens, smaller releases, and a shift toward digital platforms instead of theatrical.
“The tariff would likely accelerate a move toward direct-to-digital releases on platforms like ErosNow, Netflix, Amazon Prime, and Hulu.”
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