Union Budget 2026: Finance Minister Nirmala Sitharaman has presented the Union Budget for the ninth consecutive year in the Lok Sabha during the leadership of Prime Minister Narendra Modi on Sunday, February 1.
The finance minister said that the 2026 Budget is “Yuva Shakti-driven,” and she mentioned that the budget is centered on the poor, underprivileged, and disadvantaged classes of society.
She mentioned the initiatives taken by the government in areas such as healthcare, sports, and tourism, and she also emphasized the need to promote women entrepreneurs as part of the process of achieving Viksit Bharat by 2047.
Union Budget 2026: Film Industry Looks for Relief in Budget 2026
The Indian film and entertainment industry is also awaiting support from the Budget. Industry stakeholders are hoping for tax exemptions, reduced movie ticket prices, and more screens in smaller towns and cities.
This Budget follows a few months after the implementation of GST 2.0, which came into effect from September 22, 2025. Prior to the GST 2.0, movie tickets costing up to ₹100 were charged 12% GST, and tickets above ₹100 were charged 18% GST.
With the implementation of GST 2.0, the GST on tickets costing up to ₹100 has been slashed to 5%, providing some respite to movie buffs. However, tickets above ₹100 continue to be charged 18% GST, with no change.
Union Budget 2026: Industry Demands Lower GST for More Tickets
The Multiplex Association of India (MAI) has demanded that the 5% tax rate should also apply to movie tickets costing up to ₹300. According to estimates by EY-FICCI and MPA-Deloitte, the Indian film industry has registered gross box office collections of ₹16,000-18,000 crore in robust pre-pandemic years. The Hindi film industry alone has breached the ₹5,280 crore mark in 2024, as per a report by The Week.
Presently, there are 9,000 cinema screens in India, with the majority being in the southern states. The average number of tickets bought per person per year in India is still lower than that of China and the United States.
Union Budget 2026: How Lower Tax Could Help Audiences and Theatres
The MAI thinks that a 5% tax on "mass-market tickets" may bring down ticket prices by as much as ₹40 per ticket in many places. This means that a family of four may save ₹150-160, making movies more accessible to them. This, in turn, may lead to an increase in theatre occupancy rates, especially in Tier-2 and Tier-3 cities.
Industry insiders also think that a cut in GST rates may lead to an increase in cinema infrastructure. India may target a growth in the number of screens from 9,000 to 20,000 in the next 7-8 years. This will benefit theatre owners, enhance entertainment options in smaller towns, and help the development of these areas.
Budget 2026 focuses on youth empowerment, weaker sections, and long-term strategies. At the same time, the film industry is hoping that changes in taxation policies will make movies more accessible, increase the number of screens, and further develop the entertainment sector in India.