The hyperbole surrounding the grant of industry status underscores several absurdities. First, only the central government has the right to decide what activity qualifies for the exalted status of being an industry. Second, for reasons best known to themselves, film-making was considered inferior, unworthy of the industry appellation. Third, unless an activity is declared as an industry, banks can't lend to entrepreneurs in that sector. All this is clearly ridiculous. The halo attached to industry status should go.

Bankers should be free to lend to anyproposition they consider bankable, except in areas expressly declared to be illegal. Having said that, it is doubtful if banks will be falling over each other trying to finance films. The risks attached to funding films are high. Add to that the notoriety of the industry for making payments largely in unaccounted money, and the scope for bank finance diminishes considerably. Capital for film making is in the nature of venture capital, and the expected returns are much higher than on conventional loans. The idea of a "film bank" funded in part by the government should therefore be scotched immediately.

Film makers should instead become incorporated firms which can invite equity subscriptions from the public -- given the risk profile, equity, rather than loans, must fund the industry.