The Indian film industry, already a global powerhouse, is set to become an even more attractive destination for international filmmakers.

In a significant move, the Ministry of Information & Broadcasting has launched a new film incentive program and has increased the incentive for foreign film production from 30% to 40%.

This enhancement means that foreign film producers will now receive 40% of the expenses incurred, with a raised cap limit of 3.5 Mn USD (equivalent to INR 30 crore), along with an additional 5% bonus for Significant Indian Content (SIC).

This strategic move is poised to further propel India’s endeavors to attract medium and large-scale international film projects to the nation.

The Incentives Scheme for the Production of Foreign Films was initially announced in Cannes in May 2022 and offered a reimbursement of up to 30% of the qualifying expenses incurred for film production in the country, capped at a figure of INR 2.5 Crore. (approx. $300K USD)

In the recent announcement in November 2023, the Ministry of I&B has further enhanced the production incentives to 40% of the production expenses. The cap on qualifying spend has also been substantially increased from $300K USD to $3.6Mn USD (INR 30 Crore).

Administered by the Film Facilitation Office, this program covers live shoots, animations, post-production, and visual effects services. This major financial boost is set to attract a plethora of international productions to India’s diverse landscapes and state-of-the-art facilities.

• Type of Productions: Includes live shoots, animations, post-production, and visual effects.
• Geographical Requirement: Majority of the production should take place in India.
• Compliance: Adherence to Indian laws and regulations, including labor laws and safety standards.
• Minimum Spend: A specified minimum amount of production expenditure must be incurred in India.

• Initial Contact: Reach out to the Film Facilitation Office to express interest.
• Submission of Details: Provide project details, including script, budget, and production schedule.
• Documentation: Submit all required documents as per the checklist provided by the office.
• Evaluation: The application and project are evaluated for eligibility.
• Approval and Agreement: Once approved, an agreement is signed detailing the incentive terms.

• Eligible Costs: Includes costs related to on-ground production, hiring local talent and crew, equipment rental, and location fees.
• Expenditure in India: Only costs incurred in India are eligible for the incentive.
• Verification: Expenses must be verified and audited as per the guidelines.

• Non-Qualifying Costs: International travel, marketing expenses, and overhead costs are typically not covered.
• Cap on Incentive: Maximum incentive capped at approximately $3.59 million USD.
• Compliance: Must comply with all applicable Indian laws and regulations.

• Project Proposal: Detailed proposal including synopsis, budget, and production plan.
• Financial Records: Proof of financial stability and funding sources.
• Legal Documents: Contracts, agreements, and necessary permissions.
• Audit Reports: For expense verification and validation.

• How is the incentive percentage calculated?: Based on qualifying Indian production expenditures.
• Can the incentive be combined with other subsidies?: Depends on the terms of other subsidies; usually, this incentive is exclusive.
• What is the timeframe for receiving the incentive?: Post-production completion and audit verification.
• Are co-productions eligible?: Yes, if they meet the eligibility criteria.

By understanding these points, production and strategy professionals can get a complete picture of how to effectively navigate and benefit from India’s new film incentive program.

Ministry of Information and Broadcasting

• Website: www.mib.gov.in

Film Facilitation Office (FFO)

• Website: www.ffo.gov.in 
• Contact: https://www.ffo.gov.in/en/contact-us