Landmark film treaty strengthens UK and Indian movie industries

The treaty - which encourages Indian and UK filmmakers to collaborate – will stimulate production and provide jobs, entertainment and cultural benefits to two of the world’s greatest cinema-going nations.

It is estimated that as many as 10 Anglo-Indian projects will go into production in the next two years, helping the UK film industry weather the economic downturn.

British and Indian collaboration

Film Minister Barbara Follett hailed the deal at its launch at Trafalgar Square, the location for a major new Bollywood production, London Dreams. She said: “After the United States, the British and the Indian film industries are arguably the two greatest in the world. Now, any Indian filmmaker who wants to collaborate with a British producer will find it more financially worthwhile. We can also offer a mature production infrastructure and share expertise between the two countries’ film industries.”

She added that the UK film industry offered “an excellent product” and, referring to the new treaty’s place in the global financial situation, noted that “the wider your base in an economically difficult time, the more resilient you'll be.”

A spokesperson at the Department for Media Culture and Sport said: “Our projections suggest that the deal will lead to increased activity in the UK domestic market. That means, potentially, work for the people in our film industry – location shooting, studio work and post-production work, etc. Plus there are a number of India-set film projects in the works which are partnering UK and Indian talent and crew - so there are benefits here, too.”

The new deal

Under the new deal, Indian filmmakers who work jointly with British film producers will gain access to the new UK tax relief, one of the most generous and competitive tax reliefs in the world.

Previously, UK-Indian co-productions would have to pass the UK cultural test to qualify for tax relief – many of which would be unsuccessful, particularly if a production was made in a non-Council of Europe language.

The new treaty allows films with a greater degree of Indian creative, cultural and technical involvement to benefit from the system in partnership with the UK.

The deal also potentially offers funding from the UK Film Council to Indian filmmakers making co-productions, plus marketing support at film festivals and increased access to EU markets and TV sales.

A number of workshops for Indian filmmakers who are interested in using the treaty have been organised by the UK Film Council and Department for Media Culture and Sport and UK Trade & Investment.

After the United States, the British and the Indian film industries are arguably the two greatest in the world

A spokesperson

Department for Media Culture and Sport

The first of these will feature at the International Film Festival of India (22 November – 2 December), with two workshops in Goa and Chennai. There will be another workshop in 2009 to co-incide with the Mumbai Film Festival (19-26 February). The workshops will give practical advice, explain how the treaty works and how it can be best utilised.

Department for Media, Culture and Sport

Yet it’s not simply the moviemakers who look set to benefit, because the new treaty indirectly supports a range of non-film industry businesses too. These include everything from costume-suppliers to caterers, British-Indian owned cinemas and sectors of the UK tourist industry.

A spokesperson at the Department for Media Culture and Sport said: “The UK has a 5.9 per cent share of the Indian visitor economy. In 2004, visitors to the UK from India spent £238million, an increase of 53 per cent from 2003 and more than three times the amount spent in 1994.

Recent research has indicated that some locations seen in films can earn up to a 30 per cent boost in bookings. When an Indian production called Kabhi Khushi Khabi Gham shot at Blenheim Palace, Indian visitor numbers to the venue increased by 800 per cent.”

Hindi language films are hugely popular in the UK, with their own exhibition and distribution networks, a loyal audience and specialist distribution and exhibition. In 2005, it was estimated that Indian films accounted for over 16% of all British movie releases, taking £12.4m at the UK box office.

More than 400 UK-Indian co-production films have been made in the last seven years, including over 140 minority UK co-productions, with an average UK expenditure of 35% - worth over £1 billion to the economy.

A spokesperson at the Department for Media Culture and Sport said: “The new treaty opens up the possibility to build on the long-standing collaboration between India and the UK, two nations which have a long, shared history. Now there is a financial incentive to make films which tell stories that are of value and interest to both countries - stories which might otherwise never have been told.

The opportunity to forge greater creative collaborations between our nations is now very real - and very exciting.”