Why
India?
The Ministry of Information and Broadcasting, Government of India, has introduced comprehensive incentive schemes designed to attract international productions to India. These schemes cover live shoots, animation, postproduction, visual effects (VFX) services, and official co-productions with foreign countries.
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Incentive Scheme for Production of Foreign Films in India
International productions can benefit from a cashback incentive of up to 30% on qualifying expenditure incurred in India. This incentive is available to the Indian Service Company representing the international production. Additional bonuses include:
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5% Bonus: For employing 15% or more Indian manpower.
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5% Bonus: For including significant Indian content.
The total incentive can reach up to 40%, with a maximum cap of INR 300 million (approximately USD 3.6 million). Eligibility requires prior permission from the Ministry of Information & Broadcasting and, for documentaries, the Ministry of External Affairs.
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Incentive Scheme for Animation, Postproduction, and Visual Effects (VFX) Services
Foreign productions utilizing pure animation, postproduction, or VFX services in India can claim up to 30% cashback on qualifying expenses (which equates to 75% of the contract value). An additional 5% bonus is available for significant Indian content, with a maximum incentive cap of INR 300 million. Unlike live shoots, no prior permission is required for these projects, and the Indian Service Company can apply for interim approval upon contract signing.
Incentive Scheme for Audio-Visual Co-productions
For international co-productions, the Indian co-producer can claim a cash reimbursement of up to 30% on qualifying expenditure in India, subject to a maximum of INR 300 million (approximately USD 3.6 million). The project must hold a "Co-Production" status granted by the Ministry of Information & Broadcasting and the participating country(ies) under one of India's official bilateral co-production treaties.
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