Spread across multiple regions and languages, the Indian film industry may be facing headwinds, most notably caused by streaming disruption, but overall, there are promising signs of recovery. In H1 2025, domestic box office crossed Indian Rupees ₹57.23 billion ($686.76 million) which is 14% higher than H1 2024 according to industry analyst Ormax Media.

The mainstream Hindi language film industry saw a much-needed breakthrough with historical epic Chhaava, considered the highest-grossing Indian film of H1 2025 with total collections at Rupees ₹8 billion ($92.65 million). In South India, the Malayalam language industry delivered two major hits: Thudarum grossing Rupees ₹2.353 billion ($27.25 million) and L2: Empuraan, which collected Rupees ₹2.68 billion ($31.04 million), setting a record as the highest-grossing Malayalam film of all time.

A major highlight of H1 2025 was the Indian government’s inaugural WAVES – World Audio Visual and Entertainment Summit - which was held in Mumbai in May. The event brought together leading global figures such as Netflix CEO Ted Sarandos, YouTube CEO Neil Mohan, Busan Film Commission director/CEO Kang Sungkyu and others along with Indian superstars Shah Rukh Khan, Aamir Khan and many industry figures. According to the government, the total figure of business generated at WAVES was Rupees ₹103.49 billion ($1.2 billion).

However, the industry is still being cautious, especially in the Hindi segment which is often constrained by its over-dependence on a handful of top stars. There are serious concerns about the massive fees charged by top actors which can be over half a film’s budget. Also, Hindi films are struggling to hang on to their market share against Hindi dubbed versions of South Indian films which are making a bigger impact. In 2024, Hindi films overall had a market share of 40% but of this figure, approximately 31% came from Hindi dubbed versions of South Indian films. This means original Hindi films accounted for roughly 27.6% (40% - (31% of 40%)) of the total Indian box office, or a 37% decline in their own collections compared to 2023.

Meanwhile, independent films continue to make an artistic impact. In 2024, globally acclaimed Cannes winning title All We Imagine as Light put the spotlight on director Payal Kapadia and lead actress Kani Kusruti when the film released theatrically in India in September before it premiered on streaming platform JioHotstar in January 2025.

In June 2025, another independent film, Stolen – which premiered at Venice in 2024 – streamed globally on Amazon Prime generating buzz and acclaim for director Karan Tejpal and lead actor Abhishek Banerjee.

At Sundance, director Rohan Parashuram Kanawade’s debut feature Sabar Bonda (Cactus Pears) became the first Marathi language feature to win the World Cinema Grand Jury Prize: Dramatic. The film has been picked up for international sales by MPM Premium (France) while US distribution is with Strand Releasing.

There is no exact data available for H1 2025 as to how many films were produced or released but according to India’s Central Board of Film Certification, so far in the financial year 2025-26 (beginning from April), a total of 882 feature films were certified (from April to June). Just for reference, in the 2024-25 financial year, CBFC data indicates that a total of 3,455 feature films were certified (though its not clear how many received a theatrical release) and its safe to say that 2025-26 could also see a similar figure given India is the world’s largest producer of films.

In recent years, the horror comedy genre has gained ground though H1 2025 didn’t have any films releasing in this genre. For instance, one of 2024’s biggest hits was Hindi horror comedy Stree 2 which collected Rupees ₹8.75 billion ($104.57 million), of which Rupees ₹1.34 billion ($16.01 million) was from overseas. Historical epics can always deliver as was the case with Chhaava and comedy continued to be a successful genre in H1 2025 with hits like Housefull 5 and Tamil film Good Bad Ugly.

India has a buzzing production landscape given the wide expanse of film industries spread across multiple languages and regions. The locomotive Hindi industry in Mumbai is known for iconic studios like Yash Raj Films, Dharma Productions, T-Series and banners backed by superstars like Shah Rukh Khan and Aamir Khan in addition to relatively newer entrants like Maddock Films, among others. The Telugu language industry in Hyderabad has made waves with breakthrough films like the wildly popular Baahubali franchise backed by Arka Media Works while DVV Entertainment delivered the global sensation RRR which also won an Oscar for best song in 2023. The Chennai-based Tamil language industry has had a rich history with banners like Sun Pictures delivering blockbusters from living legend Rajnikanth while film-maker Pa Ranjith’s Neelam Productions has blazed new trails in telling stories about marginalised communities. The Kerala-based Malayalam language industry is currently on a roll with a mix of both festival darlings and commercial breakthroughs. The Bangalore-based Kannada language industry is home to banners like Hombale Films known for blockbusters such as the K.G.F and Kantara franchises.

As a counter balance to commercial cinema, independent Indian cinema has been growing over the last decade or so despite many challenges. This has seen niche players emerging such as Sikhya Entertainment which won an Oscar in 2023 for its documentary short The Elephant Whisperers. In addition, filmmakers Anurag Kashyap and Vikramaditya Motwane have thrown their weight behind many upcoming independent voices.

Financing models in the Indian industry work differently between the mainstream sector and independent films. Mainstream films are usually self-financed, also attracting private equity while for larger productions they would be studio financed.

Independent films on the other hand rely on a mix of self financing and largely, international partnerships. Foreign funds have played a major role such as the Hubert Bals Fund (for films like Court, All We Imagine As Light). India has signed coproduction treaties with 17 countries and independent films seek to qualify for these treaties to gain funding and other incentives.

The Indian industry has not been able to attract investment companies or venture capital funds to regularly participate in production. There were attempts in the past to establish dedicated VC funds for films but they didn’t work out for various reasons. However, given the turbulence in the Hindi film industry, October 2024 saw a breakthrough of sorts when iconic Hindi films banner Dharma Productions sold half of its equity to leading industrialist Adar Poonawalla (owner of biotech giant Serum Institute of India) for Rupees ₹10 billion ($120 million) with the balance 50% equity held by Dharma promoter and leading filmmaker Karan Johar. The deal valued Dharma at Rupees ₹20 billion ($240 million). This is the biggest private equity deal for a Hindi film production company and could possibly pave the way for other such deals and perhaps the strong box office performance of H1 2025 could boost investor confidence. Beyond film production, private equity has funded other sectors such as India’s largest cinema chain PVR Limited which attracted an investment of Rupees ₹8.2 billion ($120 million) from Warburg Pincus in 2017 for a 14% stake. However, gradually by 2023, Warburg Pincus sold its stake in PVR.

India has still not established a mechanism for soft money for film productions which has been a major obstacle, especially for independent films. While this is not a fund, it was only in 2023, that the government managed to enhance its film incentives for qualifying coproductions or foreign films shooting in India to earn a 30% rebate (which can go upto 40% by fulfilling other norms) with a cap of Rupees ₹300 million ($3.6 million). In addition, local state governments also offer their own incentives for film shoots. Beyond this, there are no options for soft money which is why independent films are always seeking foreign soft funds.

There is no data to indicate who are the biggest distributors but it is safe to assume that leading production companies that handle their own distribution in the major language industries can be considered market leaders. The dominance of these major companies who handle their own distribution could also be considered private oligopolies. There are no state-backed distributors except for the National Film Development Corporation which largely distributes its catalog which includes coproductions like the Oscar winning Gandhi and some new projects like Tanvi the Great. Smaller players mostly handle regional distribution.

Most distributors are independent of exhibitors, though there are some vertical integrations, most notably India’s largest cinema chain PVR Inox which also handles distribution via its arm PVR Inox Pictures.

As for exhibitors, India has a mix of corporate multiplex chains and individually owned single screen cinemas. India’s estimated screen count of 10,000 screens is roughly divided equally between multiplex and single screens.

The theatrical market is dominated by mainstream films leaving little room for independent films to seek theatrical distribution. This is made more difficult given the lack of dedicated arthouse cinemas.

Since India is the world's largest film producer by volume, there isn't a widely recognized national "screen quota" system that explicitly mandates a minimum number of Indian films to be screened in cinemas. The sheer volume of domestic productions and the multi-language nature of the industry generally ensure a dominant presence of Indian films in local cinemas. In 2024, Hollywood and all foreign films only accounted for 8% market share according to data by Ormax Media with domestic films commanding a 92% share. In H1 2025, industry estimates indicated that foreign films could have increased their share to between 10-13% thanks to the strong performance of some Hollywood blockbusters such as Mission: Impossible – The Final Reckoning. In 2019, foreign films had the highest market share ever at 15% thanks to the success of blockbusters like Avengers: Endgame.

Hollywood films are mainly distributed by the India offices of the major studios such as Warner Bros, Sony Pictures, Universal Pictures, Paramount and Disney. In addition, there are some independent distributors of foreign films in India such as PVR Inox Pictures (owned by multiplex leader PVR Inox) which mostly deals with independent US films, European and Asian films, especially Japanese anime titles such as Suzume and the Demon Slayer franchise. Star Entertainment has distributed French films like Swimming Pool and Jeanne Du Barry and Korean titles like Tarbosaurus. Impact Films made forays with the theatrical success of Korea’s Oscar-winning Parasite and European films like Another Round in addition to independent US titles like Everything Everywhere All at Once.

Since India has a strong information technology ecosystem, the film industry is also capitalising on the film tech and services sector, even if some segments are still developing. Indian filmmakers creating ambitious big budget blockbusters with visual spectacle coupled with the demand for high quality production services by streaming platforms has led to growth in this sector. India’s cost advantage in offering VFX and animation services to demanding global clients is also benefitting the local industry in terms of skill development.
According to a report by consultants Ernst & Young, India’s VFX and animation sector grew from Rupees ₹83 billion ($1.12 billion) in 2021 to Rupees ₹103 billion ($1.23 billion) in 2024 though this was a drop from Rupees ₹114 billion ($1.36 billion) in 2023 owing to a fall in global demand for such services.
India’s leading VFX company Prime Focus is a global giant which has also acquired overseas companies in the past including the prestigious London-based Oscar-winning DNEG which has worked on iconic projects such as Inception, Interstellar and the Dune franchise among others. Prime Focus/DNEG is currently working on its ambitious two-part Ramayana epic which the company claims has a combined budget of around $500 million.
There is growing investment in production facilities such as the upcoming Uttar Pradesh International Film City spread across 1,000 acres outside the capital Delhi, which will entail an investment of Rupees ₹15.10 billion ($180.84 million) in its first phase and offer comprehensive services.

In May 2025 at the WAVES conference in Mumbai, Prime Focus and the Maharashtra Government signed a Memorandum of Understanding to develop a next-generation global entertainment hub/film city in Mumbai, spanning a 200-acre area. The proposed investment by Prime Focus is Rupees ₹30 billion ($359 million).

Leading Mumbai-based post production services company Bridge Postworks has played a crucial role in supporting numerous independent films with post services such as color grading and DI. The company’s founder and lead colorist Sidharth Meer has overseen post production on over 150 films, which include mainstream commercial films as well as indie breakouts like the 2023 Oscar nominated documentary All That Breathes. He has also stepped in as executive producer on acclaimed projects including Berlin title Boksho Bondi and Sundance winner Sagar Bonda (Cactus Pears).

As for AI, there is growing uptake in generative VFX, virtual sets, de-ageing, storyboarding, scriptwriting and other areas. But the use of AI in VFX has also stirred controversy as was the case with the 2013 film Raanjhana which was re-released in August 2025 with an alternative ending created with AI by producers Eros International without the consent of the film’s director Aanand L Rai.
Meanwhile, Oscar winning Indian composer A R Rahman recently announced a collaboration with OpenAI for his virtual band Secret Mountain - described as a Metahumans project - which is linked to Hedera, a distributed ledger technology that works as an alternative to blockchains.
As for film commissions, the Indian government runs the India Cine Hub (under the National Film Development Corporation) which essentially facilitates film shooting in India for both foreign and Indian filmmakers by offering various incentives.

While mainstream commercial films don’t require any foreign partnerships, India’s constantly evolving indie scene has been forging paths for international coproductions. Since India does not have any public funds for international coproduction or any soft money, foreign partnerships are essential for indie projects.
This also sees producers trying to qualify under India’s 17 coproduction treaties with various countries, Colombia being the latest.

There have been examples of projects qualifying under treaties. The first official India-Italy coproduction Parikrama, directed by Goutam Ghose, was released theatrically in June. At the WAVES conference in May, Bengali film Devi Chowdhurani directed by Subhrajit Mitra, was announced as the first official India-UK coproduction which is slated for theatrical release in September. With an estimated budget of Rupees 250 million ($3 million), the project is coproduced by Indo-US banner ADited Motion Pictures and the UK’s HC Films and Moringa Studios. Also announced at WAVES was a MoU signed between UK company The Bridge headed by Amanda Groom and India’s Graphiti Studios headed by Munjal Shroff for the co-development of a factual series exploring India's colonial past though further details about co-financing and shared crews was not given.

Meanwhile, India is also positioning itself for inbound foreign shoots in light of the incentives announced in recent years. However, there is growing awareness about outbound partnerships as well largely through independent films with success stories like the India-France coproduction All We Imagine As Light which won at Cannes in 2024. International partnerships for indie films have been fostered by the National Film Development Corporation with its annual Film Bazaar event, which will mark its 19th edition this November. Film Bazaar has mentored award winning coproductions like The Lunchbox and animation feature Schirkoa: In Lies We Trust, among numerous others.
In conclusion, the Indian industry has still not fully realised its global ambitions since it largely serves a gigantic domestic market which is also a very strong magnet for international conglomerates. Time will tell how the next phase of evolution will play out when Indian films also break through creatively and commercially in untapped markets.