Kerala Budget Grants Industry Status to Malayalam Cinema, Allocates ₹100 Crore

The Kerala government on Friday announced industry status for Malayalam cinema in the revised State Budget for 2026-27, presented by Chief Minister V.D. Satheesan. The move has been welcomed by industry stakeholders as a long-pending demand.

The revised budget outlines comprehensive projects for the Malayalam film sector, including formal industry status, a permanent venue for the international film festival, anti-piracy cells, and efforts to attract national and international film productions. As part of these initiatives, the ‘J.C. Daniel International Film City — Chitranagaram’ will be established in Kochi. An allocation of ₹100 crore has been made for these projects.

Anil Thomas, president of the Kerala Film Chamber of Commerce, said, “It is for the first time that such a comprehensive plan and allocation have been included in the State Budget for Malayalam cinema. We wholeheartedly welcome the Budget announcement to accord industry status to the sector. This has been our long-standing demand.”

Actor Mohanlal expressed his appreciation on social media, stating that the projects would “instil a fresh vigour and boost growth in the sector.” He added that the industry status announcement would generate new hopes among thousands working in Malayalam cinema. Mohanlal thanked Chief Minister Satheesan and Culture Minister P.C. Vishnunadh for the assurances.

B. Rakesh, president of the Kerala Film Producers’ Association, described the industry status as a “game changer,” noting it would offer benefits such as reduced electricity charges for exhibitors. He also welcomed the decision to act against piracy, calling it a major problem for the industry.

Culture Minister Vishnunadh said in a statement that the budget proposal to accord industry status would help elevate the commercial and artistic potential of Malayalam cinema. He added that the government had responded positively to the long-standing demands of stakeholders.