Tax Incentives & Grants - India

India, with its rich cultural heritage, diverse landscapes, and vibrant entertainment industry, offers significant opportunities for international filmmakers. The country has introduced financial incentives at both national and state levels, coupled with streamlined processes to attract foreign productions.

India offers an unparalleled combination of financial incentives, diverse filming locations, and skilled professionals, making it a top destination for international filmmakers. With enhanced rebates, co-production opportunities, and state-level support, India is well-positioned to attract large-scale international productions while showcasing its rich cultural heritage to the world. For filmmakers seeking both financial benefits and creative inspiration, India provides a comprehensive package.

Here's a detailed breakdown of India’s film production incentives, infrastructure, and benefits for filmmakers:

  • The central government of India provides financial support and streamlined approvals to encourage foreign filmmakers to shoot in the country.

    a. Incentive Scheme for Production of Foreign Films in India

    Introduced by the Ministry of Information & Broadcasting, this scheme offers direct financial support to international productions.

    • Cash Rebate:

      • 30% rebate on qualifying production expenditures (QPE) incurred in India.

      • A cap of INR 20 million (~USD 240,000) applies.

    • Additional Bonus:

      • A 5% bonus, up to INR 5 million (~USD 60,000), for productions where at least 15% of the total workforce comprises Indian citizens.

    • Eligibility:

      • The project must be a foreign film, documentary, or TV series with substantial production activities in India.

      • The minimum spend in India must be INR 2.5 crore (~USD 300,000).

    • Qualifying Expenses:

      • Hiring Indian crew and talent.

      • Equipment rentals and set construction.

      • Location fees, transportation, and accommodation.

    • Application Process:

      • Filmmakers must engage an Indian line producer registered with the Film Facilitation Office (FFO).

      • Applications must be submitted at least 90 days prior to the start of filming in India.

      • Disbursements are made in two stages:

        1. After principal photography.

        2. Following submission of final audited accounts.

    • Recent Enhancements:

      • In 2023, the rebate was increased to 40%, with a cap raised to INR 30 million (~USD 360,000).

      Incentive Scheme for Official Co-Productions

      India has bilateral co-production treaties with more than 30 countries, enabling collaborative projects that qualify for incentives in both nations.

      • Cash Rebate:

        • Up to 30% of QPE, capped at INR 20 million (~USD 240,000).

      • Eligibility:

        • The project must be an official co-production under India's treaties.

        • Both Indian and foreign producers must have active and financial participation in the project.

      • Application Process:

        • Submit a co-production agreement to the FFO for approval.

        • Approval is required from the Ministry of Information & Broadcasting.

      • Benefits:

        • Access to incentives in both countries involved.

        • Facilitated distribution in partner countries.

  • In addition to national programs, various Indian states offer financial incentives and support to promote film production in their regions.

    a. Maharashtra (Mumbai)

    • Subsidy for Foreign Films:

      • Up to INR 10 million (~USD 120,000) for productions shot in Maharashtra.

      • Mumbai, as the hub of Bollywood, offers unparalleled access to film studios, talent, and crew.

    • Single-Window Clearance:

      • Streamlined permits for filming in public spaces and iconic locations like Marine Drive and Gateway of India.

    b. Rajasthan

    • Subsidy for Films Showcasing Rajasthan:

      • Films highlighting the state's culture and heritage may receive subsidies up to INR 5 million (~USD 60,000).

    • Locations:

      • Popular sites include the palaces of Jaipur, the sand dunes of Jaisalmer, and the forts of Udaipur.

    c. Odisha State Film Policy

    • Subsidy:

      • Up to INR 25 million (~USD 300,000) for films promoting Odisha’s culture and tourism.

      • Additional subsidies for films in regional languages with cultural themes.

    • Support:

      • Land allotment and tax exemptions for building film studios or related infrastructure.

    d. Uttar Pradesh

    • Rebate for Film Productions:

      • Offers up to INR 10 million (~USD 120,000) for Bollywood and foreign films.

    • Locations:

      • Popular filming sites include the Taj Mahal, Varanasi Ghats, and rural villages.

    e. Tamil Nadu

    • Support for Regional and Foreign Films:

      • Subsidies for films using Tamil Nadu’s rich historical sites and natural beauty.

    • Studios:

      • Chennai’s studios offer high-end facilities for post-production and VFX.

  • To access financial incentives, filmmakers must meet the following requirements:

    • Local Partner: A registered Indian line producer or production company must handle the application process.

    • Qualified Production Expenditure (QPE):

      • Expenses must directly relate to production activities in India, including crew wages, set construction, location fees, and transportation.

    • Timing:

      • Applications should be submitted at least 90 days before filming begins.

    • Increased Rebates:

      • The central government announced an increase in the foreign film rebate from 30% to 40%, raising the cap to INR 30 million (~USD 360,000).

    • Ease of Filming:

      • Initiatives like the Film Facilitation Office (FFO) provide a single-window clearance system for all permissions and permits.