Bollywood wins German privileges under new agreement with Berlin

Feb 16, 2007, 14:11 GMT

Berlin - Bollywood movies could soon win German tax benefits and even subsidies under an agreement signed Friday during the Berlin film festival, with co-productions between the two nations to enjoy all German and Indian privileges at the same time.

India's Information Minister Shri Priya Ranjan Dasmunsi flew to Berlin to sign the German-Indian film agreement with German Foreign Minister Frank-Walter Steinmeier and the junior minister for culture, Bernd Neumann, at the annual festival.

The Indian movie industry, dubbed Bollywood, has enjoyed growing export success in the West recently with Indian-style romances.

The accord is the 18th agreement of its kind between Germany and another nation. German film-makers often make co-productions, using talent and money from two nations and sometimes even filming in two languages in the hope of appealing to two audiences.

Such agreements ensure co-productions enjoy all the privileges available to the film industries in both countries, provided each side contributes at least 20 per cent of the cost of making the film as well as creative input.

The Foreign Ministry in Berlin said the accord was 'an expression of the positive relations between Germany and India' following India's presence last year as 'partner country' at the Hanover Trade Fair and the Frankfurt Book Fair.

Germany offers tax breaks to film companies and staff. Public television often funds foreign co-productions.

A Berlin agency, the FFA, is offering 60 million euros (78 million dollars) in subsidies for film projects if they satisfy a points system that favours German topics, filming in German locations or biopics about world figures. Mahatma Gandhi is listed as an example.

A tax rebate that led to hundreds of millions of euros being invested by rich Germans in Hollywood productions was abolished in 2005.