May 18, 2026 8:00pm IST
Will the West Asia Crisis Hit India’s Entertainment Industry?
Prime Minister Narendra Modi’s recent seven-point appeal to the nation in light of the ongoing West Asia crisis has become a reminder of life during the pandemic, when such directives were routinely issued to a nervous population under lockdown. That sense of déjà vu is very real today. If the pandemic demanded social distancing and jabs, the ask at the moment is for fiscal prudence, judicious spending and reduced fuel consumption.
How will these austerity measures, which the PM has exhorted the nation to heed, play out for the entertainment sector? During the lockdown years, theatres were shut and the great migration of the Indian viewer to the OTT platforms delivered a body blow to movie business. And just when theater owners were regaining their mojo and the audience was being wooed back into multiplexes and halls, this new crisis has emerged.
Variety India does a pulse check as it speaks to exhibitors, filmmakers, serial makers and producers to get a sense of how the PM’s appeal will impact the entertainment industry.
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Consumer Behavioral Shift
Will theaters run empty in a throwback to the COVID years? Monisha Advani of Emmay Entertainment says, “While I believe the pandemic was a watershed moment to recast consumer habits and behaviors, the current circumstance is more likely to impact spending patterns in the short term. Entertainment tends to be recession-proof for the most part, so I expect consumption volumes not to decline.”
Adopting an equally sanguine stance, exhibitor Akkshay Rathie says, “As humans, we need recreation and entertainment. It is almost a physiological need for us. If overseas travel and stuff like that are becoming tougher to afford, given the higher ticket prices, maybe people will actually consume through the recreational platform domestically, which includes going out to the movies with the family, that till date, continues to be the cheapest mode of outdoor recreation. So, we are hoping the entertainment section, particularly the theatrical segment/medium, will be insulated reasonably and also get a shot in the arm.”
Due to the war in the region, S.S. Rajamouli had to cancel the West Asia schedule for "Varanasi" starring Mahesh Babu and Priyanka Chopra to shoot in Hyderabad. Nikhil Sinha, founder of Triangle Film Company, with shows like “Devon Ke Dev….Mahadev,” “Shaitani Rasmein” and “Siya Ke Ram”, is also not buying into the gloom-and-doom vibes. “I do not believe we will go into a lockdown. The measures suggested are more precautionary than a signal of distress. The media sector is doing fairly well. A curb on travel might affect film, OTT and television, but we are seeing how the microdrama vertical is thriving. The slowdown, if any, will be slight.”
Shooting Troubles?
At a time when we are being asked to be mindful of fuel consumption and reduce travel, conscientious filmmakers and television producers will now think twice about shoot locations and logistics. Mukesh R Mehta of E4 Entertainment points out that “a pandemic-like situation” will certainly affect the industry on the whole, including filmmakers, producers, technicians, and even theater owners. “It is not possible to shoot every film in a closed space. Plus, bringing such restrictions is time-consuming and expensive when it comes to production. This would again cause a huge downfall financially for everyone who is a part of this industry", he states.
Yash Patnaik, founder and managing director of Inspire Films and Beyond Dreams Entertainment, who has produced shows like “Kuch Rang Pyar Ke Aise Bhi,” “Ishq Main Marjawan,” “Channa Mereya,” explains, “For a producer, it is a huge challenge as actors cannot work from home, nor can the lightman or spot boy. The writers can send scripts from home. I feel standardized rules will affect TV and film production in the same way as it impacts an industry like manufacturing. Eventually, I feel conflicts might arise on this.” The worldwide release of mega projects like the Ranbir Kapoor-starrer Ramayana and Yash-starrer Toxic, could face disruption if the geopolitical gridlock continues.
The Gulf Cooperation Council (GCC) region houses over 9 million Indian expatriates, and the Indian film industry (Hindi, Malayalam, Tamil, and Telugu films) relies on a big chunk of business from overseas. Conflict in West Asia will affect box office margins. Recently, actor and director Kamal Haasan issued a strongly-worded statement exhorting filmmakers to eschew extravagance, maintain tighter schedules and avoid expensive and frequent international shoots. His call has resonated with the industry, says producer Dhananjheyan, who is also the treasurer of the Tamil Film Active Producers Association (TAFPA).
He says that Kollywood has already started preparing, keeping in mind the worst-case scenario. “The South Indian Film Producers Association (SIFPA) has now decided to curb excessive spending, including unnecessary foreign shooting and unplanned schedules. The tweet posted by Kamal Haasan sir was an eye-opener. We are looking forward to getting expert guidance from him. The SIFPA will be formally seeking his inputs and expertise. The uncertainty regarding economic conditions is worrying, but we are hopeful of dealing with the situation. However, there won't be any compromise on the creative aspect.”
Business Outcome
Will the West Asia crisis land another sucker punch on an entertainment industry that had only just begun to see green shoots after emerging from the red? “The Pandemic,” chimes in Yash, “was a forced choice, and this is a voluntary one. However, this is a reality of the times….a new normal for us. We have to learn to manage more effectively and economically.”
Alive to how the pandemic almost killed the theater, Producer Monisha Advani says she hopes the current economic downturn does not cause another setback. “Theater-going faced its biggest disruption, and it would be good to see policymakers and producers align to reinforce this ecosystem that’s an integral part of societal choices and community building,” she says.
The Compromises
The show must go on, is the tagline of the business, so entertainment players will be expected to adapt to this new reality even as they try to minimize disruption to their businesses.
“Globally, there’s an economic deceleration, and an economy as large as India will feel its impact. I think frugality will become a recurring theme in the coming months/quarters. As an industry, we’ve been facing price sensitivity on production costs, and these conditions will bring additional pressure. It will call for greater efficiencies and adopting cost-saving measures by using technology-aided solutions, for instance,” opines Monisha Advani.
Rajan Shahi, founder of Director’s Kut Productions, the person behind TV shows like “Anupamaa,” “Yeh Rishta Kya Kehlata Hai,” “Yeh Rishtey Hain Pyar Ke,” says, “ Budgets of TV shows, anyway, have gone down a lot. Television’s funding has been affected by vertical formats and streaming shows. There are a lot of constraints. The Indian television industry is going through a tough period. But the show must go on. Indian TV show producers are the true survivors (laughs). We have to work more efficiently. We have to learn to be more economical.”
The Silver Lining
Akkshay Rathie insists that now is the time to boost domestic consumption. “I believe that through multiple crisis scenarios that countries face globally, we have an opportunity to strengthen not just entertainment, but in general, the domestic economy too. This encourages us to look inwards, and I hope it gives a bigger boost to domestic tourism; domestic consumption, domestic hospitality, and every other sector, production, service, or tertiary- this can strengthen our internal economy.”
(With inputs from Urmimala Banerjee, Thinkal Menon and Gayathri Krishnan.)
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