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Date: 06-05-25

Bad Screenplay

Trump is rethinking tariffing foreign movies. He should junk the idea

TOI Editorials

America closed its securest prison, Alcatraz, in 1963, less than a year after three men escaped from it. The decision was based on cost, not hurt pride. Alcatraz then became a tourist hangout and the setting of some popular films, including 1979’s Escape From Alcatraz. Back then, Hollywood could spot a good story, tell it well, and rake in millions. That’s how it became world’s biggest and most powerful film industry.

Only twice in the past 50 years has a non-American film topped the global box-office. First in 2020, a freak year, and now, when Chinese animation film Ne Zha 2 has earned over $2bn since its release on Jan 29. For Trump, who announced in Jan he would make Hollywood “bigger, better and stronger”, this is too much. Early on Monday, he declared Alcatraz would be turned into a prison again, and 23 minutes later, slapped a 100% tariff on “any and all movies coming into our country that are produced in foreign lands”. He then walked back the threat.

Let’s assume he goes through with it. You never know with him.First thing he should remember is that films aren’t goods. They are like software and services that earn billions of tariff- free dollars for India. Will he tariff services next? India’s GCCs might be worried. The film industry certainly is. Hindi and Telugu films have raked in millions of dollars over the past several years, but with Trump’s typically vague diktat, the cost to US distributors could double. There’s no clarity on what “produced in foreign lands” means. If part of a Hollywood film is shot abroad, is it American or foreign? Does the order also apply to OTTs?

Nobody’s denying Hollywood’s decline. Only 20% of American films and TV shows are made there now, and big-name films regularly bomb. Atlanta, New York and Texas are rivals at home, while Mexico -Netflix will invest $1bn there annually-Europe, Australia, Canada, etc, are all wooing American studios with lower costs. By raising a tariff wall, Trump can counter their cost advantage, but US will lose big if other countries tariff its films. Right now, Hollywood earns about two-thirds of its revenues abroad. Avatar, the highest grossing film ever, made 73% from foreign screens, its sequel 70%, and so did Titanic.

Trump forgets that these three films – among Hollywood’s top four earners were directed and produced by James Cameron, a Canadian. Kate Winslet, star of Titanic, is British. Hollywood’s biggest strength is that it’s a melting pot of global talent-Priyanka Chopra, Freida Pinto and the late Irrfan included. The last thing it needs is a tariff fortress-its own Alcatraz.

Date: 06-05-25

Missing Hollywood For the Trees

US movie industry must be free of tax fetters

ET Editorials

Donald Trump has now threatened to tax Hollywood films shot abroad-principally in Britain, Australia, New Zealand and Canada-to escape higher production costs at home. This runs into difficulties over how a movie is to be labelled ‘American’-by plot, cast and crew, or studio? Hollywood is the world’s fourth-largest producer of films, trailing India, Japan and China. But this comparison is irrelevant when it comes to box-office collections, which it dominates overwhelmingly. The average production budget for a Hollywood film is over 10 times that of a European movie. Hollywood blockbusters are typically characterised by FX, star power and marketing muscle- all of which drive up costs. These remain uniquely American traits that drive value in the global movie industry. Moreover, Hollywood films are released globally on distribution channels controlled by giant US media companies, which could face backlash in the event of a trade war.

Hollywood films are the most transnational in their oeuvre. Imposing limits on location curtails their creative freedom. Audiences are more demanding in terms of authentic characterisation and locales. A Harry Potter movie cannot be made without British accents or its countryside both hard to replicate in California. The nature of US engagement with the world also defines its movie industry: a steady stream of wartime footage is required from Basra, Mosul and Kandahar – or from less-dangerous locations dressed up to look like them. Separating genuine cinematic requirement from subsidy- induced outsourcing by Hollywood studios is going to be tricky and self-damaging. Hollywood, like Silicon Valley, should have the business freedom to outsource labour-intensive FX to countries like India that can do it for much less. (India sent a mission to Mars for less than it costs to make a Hollywood movie about the subject.)

Trump needs to think about the stories that make America great. And they’re not all American.

Date: 06-05-25

Cast of characters

Caste census presents both challenges and opportunities

Editorials

For the first time since 1931, Census forms will record the caste of Indians, but questions remain on the extent of the impact that the data would have on India’s affirmative action programmes. Decadal censuses, until now, have categorised citizens as SCS, STs and as per religion. In decades of reservation for SCS, STS, and OBCs, there have been concerns about which communities or individuals within these groups are able to access the benefits. The demands for a creamy layer to eliminate the economically better-off sections from reservation quotas, and for sub-categorisation to ensure smaller or relatively more backward communities are not crowded out, have gained moral and political legitimacy. The Supreme Court of India, last August, cleared the way for sub-categorisation within SCs and STs and the Justice G. Rohini Commission in 2023 finished a study to examine sub-categorisation within OBCs. The Court’s judgment was quick to draw a sharp fault line within SC and ST communities on the issue of sub-categorisation and the potential for upset in the Commission’s report has forced the government to keep its findings closely guarded. Caste groupings continue to be a determinant of political and social life and empirical data on these are essential for more effective development planning. However, the search for increased representativeness through slicing and relabelling of social groups could be an infinite process, leaving some group or the other always dissatisfied.

The other challenge is the logistics of how caste enumeration should be conducted in a country where community-based claims are numerous. The understanding of what caste is, the difference between a sub-caste and a caste group, and the reconciliation of the understanding of caste names with their morphing according to linguistic and regional variations are issues. This gap in understanding caste was reflected in the SECC 2011 dataset as well, which yielded more than 46 lakh different “castes”. Apart from the fact that there is no repository of all castes except for the lists of SCS, STS, and OBCs, the question of how to classify communities as castes, tribes, or socially and educationally backward classes continues to be litigated in High Courts and the Court in the form of countless petitions for inclusion or exclusion. The decision to enumerate caste can also be an opportunity to arrive at a consensus on these questions. The political diatribe that accompanied caste enumeration exercises in Bihar, Karnataka, and Telangana shows that this could be volatile. The Centre should build consensus on the details, now that all parties are in agreement with caste enumeration in principle. That will keep the integrity of its finding intact and beyond reproach.

Date: 06-05-25

Maritime hub

The Vizhinjam port offers enormous economic benefits for India

Editorials

 The commissioning of the Vizhinjam International Transhipment Deepwater Multipurpose Seaport, developed by Adani Ports and Special Economic Zone Ltd (APSEZ) under a public-private partnership model with the Kerala government, marks a milestone in India’s maritime history. For a country such as India, which relies heavily on foreign ports for handling around 75% of its inbound and outbound transshipment cargo, resulting in an annual revenue loss of approximately $200 million-$220 m, the port presents enormous economic opportunities. Its natural draft of about 20 metres, requiring minimal capital dredging, and its proximity to international shipping routes linking Europe, West Asia and the Far East – the east-west shipping axis-position it as a strong contender to become a transshipment hub. This could potentially bring home a significant portion of Indian cargo transshipment handled by the Singapore, Colombo, Salalah and Dubai ports. Ultra-large container vessels can berth without deviating from their route, thereby saving costs. As India’s first semi-automated port equipped with remote- controlled quay cranes and an Al-powered vessel traffic management system, Vizhinjam will signif icantly reduce vessel turnaround times. India’s container throughput capacity last year was approximately 20 million TEUS (twenty-foot equiva- lent units), contrasting with China’s 330 million TEUS. This highlights the need for modern ports such as Vizhinjam along India’s coastline.

Following the project’s agreement in 2015, the Kerala government faced challenges, including protests from fisherfolk supported by the Latin Church, natural calamities and the COVID-19 pandemic. Commercial operations commenced in July 2024, with 265 ships, including large mother ships, having berthed so far. In the first phase, the Kerala government invested ₹5,595 crore, Adani Ports spent ₹2,454 crore, and the Union government provided a viability gap fund loan of ₹818 crore – a funding structure that sparked political debate. For Vizhinjam, an all-weather port, to become a game-changer in South Asia’s maritime trade, the Centre and the State must ensure the timely completion of rail and road connectivity, which is crucial for leveraging the port’s full potential. This will facilitate efficient cargo delivery to the entire hinterland of South India. The subsequent development phases, for which AP- SEZ and the Kerala government have signed an agreement involving an investment of around ₹9,500 crore by 2028, must also be implemented promptly. Warehousing, logistics, and industrial facilities are essential for the port to evolve into a thriving commercial maritime hub.

Date: 06-05-25

आज सिंधु जल समझौता लगभग बेमानी हो चुका है

संपादकीय

भारत-पाकिस्तान सिंधु जल संधि, 1960, की प्रस्तावना (जो इसके अनुच्छेद 12 (अ) के अनुसार संधि का अभिन्न अंग है) में लिखा है- एक-दूसरे के अधिकारों और दायित्वों को ध्यान में रखते हुए सद्द्भावना और दोस्ती के भाव के साथ। 65 साल पहले का यह भाव कब का तिरोहित हो चुका है। फिर उस समय तापमान बढ़ने से ग्लेशियर से पानी का प्रवाह, पर्यावरण असंतुलन के कारण स्वच्छ पन- बिजली ऊर्जा की जरूरत और हर देश के लिए ऐसी ऊर्जा के स्रोत विकसित करने का वैश्विक दबाव भी नहीं था। सिंधु सिस्टम में पाकिस्तान की तरफ का ग्लेशियर उतनी तेजी से नहीं पिघल रहा है, जितनी तेजी से भारत का। यानी सतलज, ब्यास और रावी का जल तेजी से खत्म होगा, जो भारत के लिए जीने-मरने का सवाल बन जाएगा। संधि के अंतिम अनुच्छेद 12 (3) में बदली परिस्थितियों में दोनों देश सहमति के साथ प्रावधान बदल सकते हैं, लेकिन भारत के इस आशय की बैठक के प्रस्ताव को पाकिस्तान खारिज करता रहा। इसके लिए इस समझौते में बदलाव भारत की बड़ी जरूरत है। वियना कन्वेंशन ऑन लॉज ऑफ ट्रीटीज 1969 का पैरा 60 (3) (ब) कहता है कि अगर किसी ऐसे प्रावधान का उल्लंघन हुआ है, जो संधि के उद्देश्य को पूरा करने के लिए अपरिहार्य है तो संधि रद्द या निलंबित की जा सकती है। आतंकवाद, युद्ध, छद्म युद्ध और मैत्री भाव का साथ-साथ नहीं चल सकते।