India Market Watch: Overseas Market for Indian Films Grows and IT Sector Lay-offs Lead to Unionization

Posted by Reading Time: 5 minutes

Indian Films Earn Record Revenues in Overseas Markets

Indian films are raking in record revenues in overseas markets, especially in recent years, as big-budget movies utilize more resources to invest in local distribution networks and marketing campaigns. For instance, the Aamir Khan Bollywood starrer Dangal made US$114.18 million (Rs 736.32 crore) in China, while the Telegu film Baahubali 2 earned US$18.9 million in the US box office.

Though previously restricted to Bollywood, the Indian film industry overall has begun to eye international box offices in a much more strategic manner. Part of the reason for this is the presence of a strong Indian diaspora in some of these markets. Another factor is India’s immense soft power in terms of its cultural influence; viewers constantly seek out original content, which benefit foreign film industries.

Professional Service_CB icons_2015 RELATED: Pre-Investment, Market Entry Strategy Advisory 

Local sourcing norms delay Tesla entry into India

Recently, Elon Musk, the founder of electric carmaker Tesla, identified India’s 30 percent local sourcing norms as a barrier to the company’s entry into the country. In response, Indian policymakers clarified that India’s foreign direct investment (FDI) rules did not mandate manufacturers to comply with a minimum local component sourcing norm.

However, this minimum sourcing rule is a part of India’s retail policy. Tesla, unlike other auto manufacturers, controls the entire process of making and selling its cars. This means it even owns the stores where its cars are sold.

In the past, such hindrances have prevented American smartphone maker Apple and Swedish furniture giant Ikea from setting up their single-brand retail stores in India. These companies state that India does not yet possess the supply chain ecosystem that will make local sourcing compliance possible.

Consequently, the Indian government has emphasized that the minimum local sourcing rule will not apply to foreign ‘cutting edge’ technology products. Just what this ‘cutting edge’ refers to, is mired in confusion as the government seems to be following a case-by-case approach.

Related Link Icon-IB RELATED: Has the AI and IoT Revolution Hit India?

Lay-offs lead to unionization in India’s IT sector

India’s IT industry is facing challenging times as its export-oriented services model responds to the spread of protectionist hiring norms in various countries, especially in the US and Australia. This is in addition to the growing role played by automation and cloud and digital technologies in the sector, forcing employees to upskill or reskill or become redundant.

In fact, over the last few weeks, several hundred employees have suffered job cuts in the country’s leading IT services firms. Previously, these workers would have easily found new jobs in the industry but rising infrastructure costs and overseas hiring commitments have prevented this.

Consequently, many IT workers have joined labor unions such as the Forum for IT employees (FITE) or the New Democratic Labour Front (NDLF) IT Employees Wing. FITE has filed cases of wrongful termination with the labor departments in Bengaluru, Pune, Hyderabad, and Chennai against IT firms such as Wipro, Tech Mahindra, and Cognizant.

India’s labor laws are confusing when it comes to regulating the IT industry, due to the absence of any special Act governing the sector. For instance, labor dispute mediation often makes reference to the Industrial Disputes Act, which may not always be suitable or relevant.

Professional Service_CB icons_2015 RELATED: Information Technology Solutions

RERA to force property brokers out of work

The Real Estate (Regulation and Development) Act 2016 (RERA), India’s new realty law, came into force on May 1. It defines stringent norms for property developers and promoters, in an effort to introduce transparency and accountability in the real estate sector.

Under RERA norms, all property brokers will need to register with their respective state real estate regulators. Moreover, RERA dictates that brokers will be liable to penalties as high as five percent of the property cost in case of misrepresentation or even malpractice and delays by the developers.

As a result, only the most serious and well-backed brokerage firms will survive, meaning the sector should see growing mergers and acquisitions as small firms consolidate with major ones.

Experts predict that 50-75 percent of local property brokers will exit the business in the next three years as regulatory reforms shape the real estate market.


About Us 

India Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Eurasia, including ASEAN, China, Indonesia, Russia, the Silk Road, & Vietnam. For editorial matters please contact us here and for a complimentary subscription to our products, please click here.
Dezan Shira & Associates provide business intelligence, due diligence, legal, tax and advisory services throughout India and the Asian region. We maintain offices in Delhi and Mumbai and throughout China, South-East Asia, India, and Russia. For assistance with India investment issues or into Asia overall, please contact us at or visit us at


Related Reading-IB

dsa brochure

Dezan Shira & Associates Brochure

Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.

 An Introduction to Doing Business in India 2017

An Introduction to Doing Business in India 2017 is designed to introduce the fundamentals of investing in India. As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to stay up-to-date with the most recent and relevant policy changes.

Payroll processing and compliance in India

Payroll Processing and Compliance in India

In this issue of India Briefing Magazine, we discuss payroll processing and reporting in India, and the various regulations and tax norms that impact salary and wage computation. Further, we explain India’s complex social security system and gratuity law, and how it applies to companies. Finally, we describe the importance of IT infrastructure, compliance, and confidentiality when processing payroll in India.