The films incorporating "significant Indian content" will receive an extra 5% rebate bonus.
India’s Ministry for Information and Broadcasting has announced a substantial increase in the country’s production incentive. The rebate on qualifying spend has been raised from 30% to 40%, with a capped limit of $3.6m, according to a report by Deadline.
Furthermore, an additional 5% bonus will be granted for films showcasing significant Indian content. To be eligible for this enhanced incentive, international productions must secure shooting permission from the I&B Ministry since April 1 of the current year. Documentaries, in addition to I&B Ministry clearance, must also receive approval from the Ministry of External Affairs.
The announcement was made by India’s I&B Minister Anurag Thakur during the opening ceremony of the International Film Festival of India (IFFI) in Goa.
Minister Thakur emphasised that these changes are strategically crafted to attract more medium and large-budget international film projects to India. The initiative aligns with the government’s overarching objective of promoting ‘Ease of Doing Business in India.’ Thakur stated: “This paradigm shift in incentivizing 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.”
The Film Facilitation Office (FFO) under India’s National Film Development Corporation (NFDC) will oversee the management of the incentive. Productions seeking the incentive will undergo an assessment by a Special Incentive Evaluation Committee, and the disbursement will occur in two stages – Interim and Final. The final disbursement claim can be made upon the completion of the project in India.
It is noteworthy that India’s production incentive was initially unveiled at the Cannes Film Festival in 2022, with the cap set at $3m at that time, catering to smaller budget productions. This move to increase the incentive reflects a strategic effort to attract a broader spectrum of international film projects.
