The Indian film and entertainment industry is looking forward to Finance Minister Nirmala Sitharaman's budget 2026.
The industry hopes for tax relief, cheaper movie tickets and expansion of movie screens in small towns and cities.
Industry feels that lower GST will lead to screen expansion and India could target 20,000 screens over 7–8 years.
Union Budget 2026: Finance Minister Nirmala Sitharaman on Sunday (February 1) presented her ninth consecutive Budget in the Lok Sabha under Prime Minister Narendra Modi’s leadership. She laid out the government’s economic roadmap for growth and stability. Sitharaman termed the 2026 Budget “Yuva Shakti-driven", with the prime focus on the poor, underprivileged, and disadvantaged sections.
The FM addressed the government's initiatives in health, sports, and tourism industries. She also spoke about the vision for women-led enterprises to build Viksit Bharat by 2047.
The Indian film and entertainment industry also hopes for tax relief, cheaper movie tickets and more screens in small towns and cities.
The Union budget 2026 has come just months after the GST 2.0 reform, which came into effect on September 22, 2025. Earlier, the tax on movie tickets priced up to Rs 100 was at 12% and 18% above Rs 100.
After the GST 2.0 came into effect, the tax on movie tickets priced up to Rs. 100 was reduced to 5%, from 12%. Tickets priced above Rs 100 continued with 18% GST, with no change in their existing rates.
The Multiplex Association of India (MAI) argued to extend the 5% tax slab to tickets priced up to Rs 300.
According to the latest EY–FICCI and MPA–Deloitte estimates, India’s film industry generated around Rs 16,000–18,000 crore (gross) box office revenues in pre‑pandemic‑plus years. The Hindi film industry crossed Rs 5,280 crore in 2024, reported The Week.
There are around 9,000 screens, which are more in the South, and the average number of cinema tickets purchased per person per year is lower than in China and the United States, indicating tax-sensitive demand.
The MAI stated that a 5% tax relief on "mass‑market tickets" could reduce the price by around Rs 40 per ticket in many cities, a huge saving of Rs 150–160 for a family of four, which will further increase the occupancy in Tier‑2 and Tier‑3 cities.
Industry feels that lower GST will lead to screen expansion and India could target 20,000 screens over 7–8 years, boosting infrastructure development in smaller towns, making cinema more affordable for audiences, and supporting theatre owners.
