Govt hikes incentives for foreign film production in India to 40%

In a significant announcement by Union Minister for Information & Broadcasting and Youth Affairs & Sports Anurag Singh Thakur at the 54th International Film Festival of India (IFFI), the incentive for foreign film production has been enhanced from 30% to 40%. The incentive for foreign film production in the country stands today at 40% of the expenses incurred, with an increased cap limit of Rs 30 crore (exceeding $3.5 million) and an additional 5% per cent bonus for Significant Indian Content (SIC). This step will give further impetus to India’s efforts to attract medium and big budget international film projects to the country.

The announcement is also part of the efforts to streamline foreign film productions and to ensure ‘Ease of Doing Business in India’.

The Incentives Scheme for the Production of Foreign Films was announced by India last year in Cannes, offering a reimbursement of up to 30% of the expenses incurred for film production in the country, capped at a figure of Rs 2.5 crore. Making the announcement in Goa, the I&B Minister said, “This paradigm shift in incentivising 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 endeavours,” he added. 

International productions that have been granted shooting permission by the Ministry of Information & Broadcasting and Ministry of External Affairs (for documentaries only) after 01.04.2022 will be eligible for this incentive scheme. The incentives will be disbursed in two stages – Interim and Final. The final disbursement claim can be made once the project is complete in India. Incentives will be provided on the recommendation of a Special Incentive Evaluation Committee. Film Facilitation Office (FFO) set up under the National Film Development Corporation (NFDC) is executing this incentive scheme. FFO acts as a single-window facilitation and clearance mechanism that eases filming in India, as well as endeavouring to create a film-friendly ecosystem and promoting the country as a filming destination.

The services rendered by the FFO have now been extended to Indian filmmakers as well.

The announcement and the policy interventions in the sector are aimed at boosting the economy, creating jobs and promote tourism and culture in the country. The sunrise industries like AVGC: Animation, Visual Effects and Post-production services are also expected to benefit from the recent initiatives in the film sector.