9/15/2020 India Poised to Create Film Production Incentives - Variety

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HOME > FILM > ASIA May 15, 2019 12:00pm PT

India Poised to Create Film Production

Incentives (EXCLUSIVE)
By Patrick Frater

Rex / Shutterstock

India is within weeks of establishing a scheme of location shooting incentives that could help put the
world’s most proli c lmmaking nation on the map for international lm productions.

The country is seeking to create a rebate scheme that could give feature lms shot in India a 30%
discount. It would be matched by another scheme helping international co-productions.

Both moves are conditional on the continuation of the Narendra Modi-headed government, which is
currently seeking re-election. Election results will be known on May 23 and the lm industry support
measures could be announced shortly thereafter.

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9/15/2020 India Poised to Create Film Production Incentives - Variety

Speaking in Cannes, Amit Khare, secretary, Ministry of Information and Broadcasting, told Variety
that the Modi government will likely categorize the media and entertainment sector as one of a dozen
“champion sectors” capable of delivering above-average growth, and in need of encouragement. He
outlined the planned production incentive schemes and hinted at further possible tax cuts for the
sector.

A D V E RT I S E M E N T

While details are yet to be nalized, Khare said that qualifying production spend in India could enjoy
a rebate of 30%, capped at 20 million rupees ($300,000) per lm. The scheme would initially be
endowed with $7.5 million and be administered through the National Film Development Corp., which
until recently been focused mostly on grant schemes for local Indian movies.

Khare said that rebate cash would be paid within three months of proof of the qualifying production
spend. And in order to allow lms to draw down some cash early while they are shooting, a partial-
refund scheme may also be introduced.

Khare said that the spillover or multiplier effect from stimulating lm production — derived in terms
of employment, taxation and image — make the incentive moves politically acceptable. He said that
Modi understands the economic bene ts and had demonstrated his commitment to the industry by
personally inaugurating the National Museum of Indian Cinema in Mumbai, and by cutting the goods
and services tax rate on lm tickets from 28% to 18%.

India currently has 13 bilateral co-production treaties. But Khare said that treaties only work well
when there is local nance to be had. He also said that he understood India to be in competition with
other countries for lm shoots. He named Morocco, Malta and Thailand as territories with competing
location attraction schemes.

The likely incentive moves follow the of cial launch in November of the Film Facilitation Of ce and
so-called “single-window clearance.” The FFO and the centralized permits system are both intended
to simplify the formidably bureaucratic process of lining up all necessary paperwork in a vast country
with 36 states or regional governments and dozens of languages as well as national bodies such as the
National Monuments Authority.

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