publishing industry Posts

“The Journey Of Indian Publishing” by Jaya Bhattacharji Rose

I recently contributed to How to Get Published in India edited by Meghna Pant. The first half is a detailed handbook by Meghna Pant on how to get published but the second half includes essays by Jeffrey Archer, Twinkle Khanna, Ashwin Sanghi, Namita Gokhale, Arunava Sinha, Ravi Subramanian et al.

Here is the essay I wrote:

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AS LONG as I can recall I have wanted to be a publisher.  My first ‘publication’ was a short story in a newspaper when I was a child. Over the years I published book reviews and articles on the publishing industry, such as on the Nai Sarak book market in the heart of old Delhi.  These articles were print editions. Back then, owning a computer at home was still a rarity.

In the 1990s, I guest-edited special issues of  The Book Review on children’s and young adult literature at a time when this genre was not even considered a category worth taking note of. Putting together an issue meant using the landline phone preferably during office hours to call publishers/reviewers, or posting letters by snail mail to publishers within India and abroad, hoping some books would arrive in due course. For instance, the first Harry Potter novel came to me via a friend in Chicago who wrote, “Read this. It’s a book about a wizard that is selling very well.” The next couple of volumes were impossible to get, for at least a few months in India. By the fifth volume, Bloomsbury UK sent me a review copy before the release date, for it was not yet available in India. For the seventh volume a simultaneous release had been organised worldwide. I got my copy the same day from Penguin India, as it was released by Bloomsbury in London (at the time Bloomsbury was still being represented by Penguin India). Publication of this series transformed how the children’s literature market was viewed worldwide.

To add variety to these special issues of The Book Review I commissioned stories, translations from Indian regional languages (mostly short stories for children), solicited poems, and received lovely ones such as an original poem by Ruskin Bond. All contributions were written in longhand and sent by snail mail, which I would then transfer on to my mother’s 486 computer using Word Perfect software. These articles were printed on a dot matrix printer, backups were made on floppies, and then sent for production. Soon rumours began of a bunch of bright Stanford students who were launching Google. No one was clear what it meant. Meanwhile, the Indian government launched dial-up Internet (mostly unreliable connectivity); nevertheless, we subscribed, although there were few people to send emails to!

The Daryaganj  Sunday  Bazaar where second-hand books were sold was the place to get treasures and international editions. This was unlike today, where there’s instant gratification via online retail platforms, such as Amazon and Flipkart, fulfilled usually by local offices of multi-national publishing firms. Before 2000, and the digital boom, most of these did not exist as independent firms in India. Apart from Oxford University Press, some publishers had a presence in India via partnerships: TATA McGraw Hill, HarperCollins with Rupa, and Penguin India with Anand Bazaar Patrika.

From the 1980s, independent presses began to be established like Kali for Women, Tulika and KATHA. 1990s onwards, especially in the noughts, many more appeared— Leftword Books, Three Essays, TARA Books, A&A Trust, Karadi Tales, Navayana, Duckbill Books, Yoda Press, Women Unlimited, Zubaan etc. All this while, publishing houses established by families at the time of Independence or a little before, like Rajpal & Sons, Rajkamal Prakashan, Vani Prakashan etc continued to do their good work in Hindi publishing. Government organisations like the National Book Trust (NBT) and the Sahitya Akademi were doing sterling work in making literature available from other regional languages, while encouraging children’s literature. The NBT organised the bi-annual world book fair (WBF) in Delhi every January. The prominent visibility in the international English language markets of regional language writers, such as Tamil writers Perumal Murugan and Salma (published by Kalachuvadu), so evident today, was a rare phenomenon back then.

In 2000, I wrote the first book market report of India for Publisher’s Association UK. Since little data existed then, estimating values and size was challenging. So, I created the report based on innumerable conversations with industry veterans and some confidential documents. For years thereafter data from the report was being quoted, as little information on this growing market existed. (Now, of course, with Nielsen Book Scan mapping Indian publishing regularly, we know exact figures, such as: the industry is worth approximately $6 billion.) I was also relatively ‘new’ to publishing having recently joined feminist publisher Urvashi Butalia’s Zubaan. It was an exciting time to be in publishing. Email had arrived. Internet connectivity had sped up processes of communication and production. It was possible to reach out to readers and new markets with regular e-newsletters. Yet, print formats still ruled.

By now multinational publishing houses such as Penguin Random House India, Scholastic India, Pan Macmillan, HarperCollins  India, Hachette India, Simon & Schuster India had opened offices in India. These included academic firms like Wiley, Taylor & Francis, Springer, and Pearson too. E-books took a little longer to arrive but they did. Increasingly digital bundles of journal subscriptions began to be sold to institutions by academic publishers, with digital formats favoured over print editions.

Today, easy access to the Internet has exploded the ways of publishing. The Indian publishing industry is thriving with self-publishing estimated to be approximately 35% of all business. Genres such as translations, women’s writing and children’s literature, that were barely considered earlier, are now strong focus areas for publishers. Regional languages are vibrant markets and cross-pollination of translations is actively encouraged. Literary festivals and book launches are thriving. Literary agents have become staple features of the landscape. Book fairs in schools are regular features of school calendars. Titles released worldwide are simultaneously available in India. Online opportunities have made books available in 2 and 3-tier towns of India, which lack physical bookstores. These conveniences are helping bolster readership and fostering a core book market. Now the World Book Fair is held annually and has morphed into a trade fair, frequented by international delegations, with many constructive business transactions happening on the sidelines. In February 2018 the International Publishers Association Congress was held in India after a gap of 25 years! No wonder India is considered the third largest English language book market of the world! With many regional language markets, India consists of diverse markets within a market. It is set to grow. This hasn’t gone unnoticed. In 2017, Livres Canada Books commissioned me to write a report on the Indian book market and the opportunities available for Canadian publishers. This is despite the fact that countries like Canada, whose literature consists mostly of books from France and New York, are typically least interested in other markets.

As an independent publishing consultant I often write on literature and the business of publishing on my blog … an opportunity that was unthinkable before the Internet boom. At the time of writing the visitor counter on my blog had crossed 5.5 million. The future of publishing is exciting particularly with neural computing transforming the translation landscape and making literature from different cultures rapidly available. Artificial Intelligence (AI) is being experimented with to create short stories. Technological advancements such as print-on-demand are reducing warehousing costs, augmented reality  is adding a magical element to traditional forms of storytelling, smartphones with processing chips of 8GB RAM and storage capacities of 256GB seamlessly synchronised with emails and online cloud storage are adding to the heady mix of publishing. Content consumption is happening on electronic devices AND print. E-readers like Kindle are a new form of mechanised process, which are democratizing the publishing process in a manner seen first with Gutenberg and hand presses, and later with the Industrial Revolution and its steam operated printing presses. 

The future of publishing is crazily unpredictable and incredibly exciting! 

3 Feb 2019

Decoding GST at the GST Expert Table at JUMPSTART, Friday 4th August 2017

GST has been implemented as of 1 July 2017. It is early days as yet but GBO is organising a roundtable on the topic. I will be moderating it. Here are the details. 

Dear Friends,

Greetings from the German Book Office!

In the view of the current GST regime, publishers and printers have many questions about the taxation purview. German Book Office cordially invites you to participate in the Round Table on GST at JUMPSTART 2017. This is an open round-table especially designed for clarifications on the matter of GST, to be held at India International Centre, New Wing. It will be moderated by Jaya Bhattacharji Rose, International Publishing Consultant.

Expert:
1. Mr. Sujit Ghosh, Partner at ADVAITA Legal
2. Mr. Sanjay Garg, Partner- Indirect Tax, KPMG India

Agenda: Book publishing and printing – GST Do’s & Don’ts

Who should attend?
– Printers
– Publishers
– Authors
– Publishing professionals

The Publishing & Print Industry is in a state of dilemma with the new tax structure affecting the business. Come join us in this open house discussion while we decode GST.

Date
4 August 2016
Time
4 p.m. to 6 p.m.
Venue
India International Centre, New Wing, New Delhi

To confirm your availability please contact the following number: 011 49120951. By invitation only.

Prashasti Rastogi | DIRECTOR

GERMAN BOOK OFFICE NEW DELHI

www.newdelhi.gbo.org

The German Book Office New Delhi is a joint venture between the Frankfurt Book Fair And the Federal Foreign Office, Berlin.

_________________________________________
FRANKFURT BOOK FAIR: 11 – 15 OCTOBER 2017

GUEST OF HONOR: FRANCE

There’s no GST on books. And yet books will become more expensive: Suppliers will have to pay GST, and that will raise the cost of producing books

On 1 July 2017  the Government of India replaced the existing tax system with Goods and Services Tax or GST. I wrote in Scroll the impact this new tax will have on the publishing industry. My article was published on 8 July 2017. The text is c&p below. 

Update ( 8 July 2017): At the time of writing the GST for author’s royalties was 18% and that of printing was 5%. Subsequently after the article was published reliable sources said these figures had been revised. The GST on author’s royalties had been reduced to 12% and that of printing increased to 12%. This is a situation which is in flux and the numbers have to be constantly monitored on Government of India notifications before the new taxation system stabilizes. 

On the face of it, the fact that no Goods and Services Tax has been imposed on books – there was no excise either earlier – should have been good news for publishers and readers alike. The new tax system, which replaces the older, multi-layered version, envisages zero GST on books of all kinds. However, there’s a catch.

While books attract no GST, many of the components of a book do. All along the value chain, from paper to printing to author royalties, GST payments have kicked in from July 1 onwards, which means that the cost of putting together a book will now be higher. Ananth Padmanabhan, CEO, HarperCollins India said, “GST does have an impact on input costs.”

And, to maintain their margins – which have already been under pressure – publishers may have no choice but to increase prices. With most individual titles – barring textbooks and mass market bestsellers – already seeing dwindling sales, higher prices are not welcome right now.

Why prices will rise
What goes into a book? The intellectual property comes from the writer, in the form of the manuscript. The physical components include paper, ink, glue, etc., required for printing and binding a book. And the services are in the form of printing and delivery to the publisher’s warehouse. Now, with GST slapped on each of these components, the paper-supplies and the printer, for instance, will add this tax to their cost. In other words, it will be the publisher, who buys the products or the service from them, who will have to foot this additional expense.

The publishing industry uses the services of freelance experts for many aspects of editing and production – copy-editing, proofreading, type-setting, cover design, illustrations, and so on – all of whom will now have to pay 18% GST instead of 15% service tax. Since they will pass this cost on to the publisher, the expenses will rise further.

Explained Manas Saikia, co-founder, Speaking Tiger Books, “There is an 18% GST on all service providers. If they are registered under GST then they will charge it with their bills. If they are not registered, then there will be a reverse tax charge so the publisher will pay. The exact cost increase will vary and I would say production, pre-press, and royalty costs will go up by 5% to 6% in total.”

But why will publishers not get the same benefit that other industries will get? As with the older Value Added Tax, the GST also includes the concept of Input Tax Credits (ITC). Put simply, this means that the seller of the final product has to pay GST at the prevailing rate, but can claim credits on all the GST already paid by his suppliers. In this scenario, the publisher would have been able to claim ITC on the GST paid its suppliers – had there been a GST on the books it’s selling.

However, since there is no GST on books, the question of claiming such credits does not arise. So, the publisher will find their costs increasing because of the GST paid by its suppliers, which range from 12% on paper to 18% on printing. Said Thomas Abraham, CEO, Hachette India: “Printers have told us that there is a 5% plus increase in material cost due to GST.”

The impact on royalties
Royalties are the payment that a publisher makes to the writer of a book. It is usually calculated as a percentage of the cover price of the book – usually between 7.5% and 15%, depending on the stature of the writer, the format of the book, and the number of copies sold. This form of payment means that the author’s earnings are proportionate to the number of copies sold. However, some royalties are usually paid as an advance, to be adjusted against actual earnings later. But since publishers do no ask writers to return their advance even if they have not sold enough copies to justify that advance in the first place, this first tranche is thus a sunken cost.

Now, for the first, royalties have come under the indirect tax ambit, attracting a GST of 18%, versus zero earlier. So, an advance royalty to an author of, say, Rs 1 lakh, will now mean a tax payment of Rs 18,000. Who will pay this? As things stand, publishers are preparing to foot this cost as well, using a mechanism called reverse tax, paying the tax on the writer’s behalf as the writer may not have registered for GST.

Another option for publishers as they struggle to contain costs might be to reduce royalty payments to offset the 18% additional tax. That would be bad news for writers – but it may not be a strategy that any publisher will adopt willingly.

Summed up Abraham, “As it appears now, books are poised to become more expensive. Ironic for a category that has been kept ‘GST exempt’, but all the raw materials that make up books have gone up. So publishers may be left with no choice, but to pass on the inflationary increase from GST. Something the government may need to look into, if it kept books exempted so that prices could be held.” Added Neeraj Jain, Managing Director, Scholastic India, echoing a more optimistic view, “It’s difficult to measure the impact of GST on the publishing industry immediately. It is best to wait and watch.”

7 July 2017

Edward St Aubyn “Lost for Words”

Edward St Aubyn “Lost for Words”

Lost for Words‘Sometimes you have to read the judges rather than the books,’ he could imagine himself saying in the long Vanity Fair profile that would one day inevitably be written about him. ( p.222)

‘What we have offered the public is the opinions of five judges who were all asking themselves the same basic question: Which one of these books could be enjoyed by the largest number of ordinary people up and down the country?” ” ( p.251)

Award-winning novel Lost for Words by Edward St Aubyn is meant to be a satire on the Man Booker Prize. The story is ostensibly about the five judges selecting books for the Elysian Prize and the process by which the winner is arrived at. As the author points out that the “gentlemanly mist that still lingered over the field of publishing” made it impossible for people within the industry to seek clarifications about a project/book, let alone money. There is the usual bickering and informed decisions and then the subjective off-the-cuff remarks that add up to pick a surprise winner.

Except for a handful of smart observations about the publishing industry which only an insider can divulge, Lost for Words is one of the dullest novels I have read for a long time. It plods along. Never does it seem to trot or even canter tolerably well. The conversations about literature seem to meander with no sparkling wit or analysis; the attempts at creating extracts from different novels in the running for the prize are mediocre with the voices sound very similar; but the icing on the cake is the caricature of the “Indian novelist”, Lakshmi Badanpur or Auntie — it is unsavoury, making you cringe with embarassment.

The last novel based on the publishing industry I particularly liked was David Davidar’s Ithaca. ( http://www.thehindu.com/books/an-insiders-tale/article2503277.ece )

Edward St Aubyn Lost for Words Picador, London, 2014. Hb, pp. 260. Rs. 699