Trump Policy Change: The Indian film industry, especially Telugu cinema, is now in turmoil. Why? Because costs are going through the roof and box-office audiences are dwindling. Families might have moved away from going to theaters, which means that now it is only the youth and masses that are holding the box office together. Increasing ticket prices don’t make it any easier for producers to recover their investments, giving rise to the questions if films are actually ever breaking even.
Production cost is yet another pressing variable in this equation. Ten years ago, top-notch heroes used to take remuneration of ₹10–20 crores, and these days, the stars are getting remuneration exceeding ₹100–200 crores for Prabhas, Allu Arjun, Rajinikanth, Shah Rukh Khan, and so on. Even for mid-range stars like NTR, Ram Charan, Mahesh Babu, and Pawan Kalyan, the ₹100-crore club is really good. Film budgets have doubled or even tripled with increase in goods, services, and technical expenses. What could have been produced with ₹100 crore now costs ₹200-300 crore.
A welcome respite for producers comes from the overseas and OTT markets. North America, in this case, contributes nearly 75%-80% of total overseas revenues, often accounting for 20%-30% of a film’s total earnings. Pushpa 2 has made $40 million (₹360 crores), while Baahubali 2, Kalki 2898 AD, RRR, Pathaan, and Jawan have mopped up great amounts of money in America. Every year, around ₹1,500–2,000 crores are earned by Telugu and Indian movies from the U.S. market alone.
If the new policies under Trump reduce or restrict the entry of Indian films or the audience for these films in America, losses may run into untold devastation. Trade pundits value Telugu films at losing almost ₹500 to 800 crores a year, and indicated collectively the losses from Indian films may cross ₹2000 crores. With the budgets skyrocketing and theater footfalls dwindling in India, it sure will be a disaster if they lose the U.S. market.
Also Read: Top 5 Telugu Blockbusters of 2025 Ranked: No ₹500 cr for Tollywood
Telugu cinema survives because of its fan following abroad. Especially in America. If the Trump decision were to affect the revenues of films in the overseas market, it could very well be the largest-ever financial crisis for the industry.
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