India’s Ministry of Information and Broadcasting has announced an increase in the country’s production incentive from a 30% discount to 40% on eligible expenditure, capped at US$3.6 million (Rs300 million).
Additionally, a 5% bonus will be given for films with significant Indian content. To be eligible for the increased incentive, international productions must first receive filming authorization from the I&B Ministry (since April 1 this year). Documentaries must also receive authorization from the Ministry of Foreign Affairs.
India’s I&B Minister Anurag Thakur announced the news at the opening ceremony of the International Film Festival of India (IFFI) in Goa.
Thakur said the changes were designed to attract more medium and big-budget international film projects to India and also in line with the government’s broader objective of ensuring “Ease of Doing Business in India”.
“This paradigm shift in encouraging film production serves as a testament to India’s commitment and support for artistic expression and reinforces our position as a preferred destination for cinematic ventures,” said Thakur.
The incentive is being administered by the Film Facilitation Office (FFO) of the National Film Development Corporation (NFDC) of India. Productions applying for the incentive will be evaluated by a Special Incentive Evaluation Committee and the disbursement will be made in two stages – Provisional and Final. The final disbursement request can be made once the project is completed in India.
India’s production incentive was first announced at the Cannes Film Festival in 2022. The incentive cap was previously set at US$3 million (Rs250 million), making it more suitable for lower-budget productions.
IFFI held its opening ceremony on November 20th with the screening of the opening film Collecting dust directed by Stuart Gatt and runs until November 28.