MUMBAI, MAR 9: At a time when the international majors in retail, automobile and even entertainment, amongst others, have entered the surging Indian market, the international amusement industry, especially theme park operators are adopting a cautious approach to enter India due to bureaucratic hassles and price differentiations.

According to the industry sources, international players are very keen to enter the Indian market, but issues like multiple licensing at the state level and the absence of a proper regulatory authority for the industry, are dampeners. The likes of Paramount and Walt Disney, leaders in the international amusement industry, are keeping a close watch on the Indian market, industry sources said.

The amusement industry in India is growing at the rate of 25% and close to Rs 2500- Rs 3000 crore was invested in the Indian market last year. This figure is expected to double in the next three years. There are over 150 theme parks across the country today and 6-7 parks are expected in 2007.

Though there are a number of international machinery and equipment suppliers in India, there is hardly anyone offering full-fledged theme park from abroad. Barring the recent entry of Turner Inc, which has tied up with the International Recreation Parks Pvt Ltd for the Noida Entertainment Park, there are few other international players in the market.

Comparing the ways of operating in India and abroad, Rajen Shah, president of the Indian Association of Amusement Parks and Industries (IAAPI), explained, “The guidelines abroad are clear, due to which there are no operational hindrances from the various departments. Coupled with this, there is a single window clearance as well. In India, companies have to face a number of bureaucratic hassles. One needs to get at least 25-30 different licences from different authorities and that too, have to be renewed in a year’s time. Then there is no uniformity in taxes paid at the state level. At some places the entertainment tax is 0%, whereas in others it is as high as 50-60%. Unless all this regulated, it will take a while, may be even 5 years before global players mark their entry.” Another reason for delay in entry by these giants is the glaring gap in the revenues that can be earned in India as compared to those in the developed markets. While amusement parks in India charge $2 to $10 as entrance fee per person, those in developed nations charge between $16 to as high as $80.

Last year, the alliance of Turner Inc and IRPPL invested Rs 1600 crore on the Noida Entertainment Park to provide specific themes to the amusement parks based on the shows of children entertainment channels Cartoon Network and Pogo. If this project clicks, then India may see entry of Walt Disney sooner than expected, sources added.