The 40% India Film Incentive: Free Money (If You Follow the Rules)

A Producer’s Guide to Navigating India’s Cash Rebate Scheme

Yes, you read that correctly, India now offers up to 40% cash rebate on your India production budget! Thinking of bringing your next film, TV series, or documentary project to India? Discover how India's recently updated production incentives can make your project more cost-effective.

Governments around the world recognize film and TV production as a key economic sector. At the time of writing, there are 120 such incentives globally.

India now offers a highly competitive proposition with a potential rebate of 40% on your qualifying production expenditure.

Let’s cut to the chase. The Indian government wants your business, and they are willing to pay for it.

The new Incentive Scheme for Production of Foreign Films is one of the most competitive in the world. It offers a Cash Rebate of up to 40% on your Qualifying Production Expenditure (QPE) in India.

But, this is India. Nothing comes without paperwork.

The incentive is not a "handout"; it is a reimbursement process with strict audit requirements. The application route is via a registered Line Producer or Production Services Company to the India Cine Hub (ICH), a single-window clearance portal set up by the Ministry of Information & Broadcasting (MI&B).

GFS India Cine Hub Profile - Click to enlarge

If you get the paperwork wrong at the start, you get zero at the end. As your local Production Services Company, our job is to ensure that doesn't happen.

We are a Government of India registered film company - Enter our CIN U74999GA2007PTC004995 at Ministry of Corporate Affairs site to verify our details.

Goa Film Services is a registered Production Services Company with the India Cine Hub, streamlining your Interim Approval process and ensuring audit compliance.

The "At a Glance" Breakdown

The Incentive Structure:

The Base Layer (30%): You get a 30% reimbursement on your qualified India spend.
The "Local Hire" Bonus (+5%): You get an extra 5% if at least 15% of your workforce is Indian (which, let’s be honest, we highly recommend anyway).
The "Content" Bonus (+5%): You get another 5% for "Significant Indian Content" (SIC)—essentially, portraying India or its culture prominently.
The Cap: The total payout is capped at INR 300 Million (approx. $3.4M USD) per project.

Minimum Spend Requirements:

Feature Films (incl Animation Features) / TV Shows & Drama Series: You must spend at least INR 30 Million (approx. $340,000 USD) in India.
Documentaries: ZERO. There is no minimum spend threshold for documentaries. (Yes, this is huge news for doc producers).
Reality Shows, Music Videos, Quiz Shows, News & Current Affairs, Sports & Events Coverage, Magazine & Lifestyle, and Corporate & Advertising: Are all excluded from the scheme.

The "Gotcha": Interim Approval

This is the single most important sentence on this page:

You cannot apply for the rebate after you have finished filming.

To be eligible, we must apply for Interim Approval from the India Cine Hub (the government body) before principal photography begins.

If you show up, shoot, and then ask for the money, the answer will be no. This is why engaging a Line Producer as early as possible (at least 8-12 weeks out) is critical. We need to prepare your budget, schedule, and script for the MI&B application before you even board the plane.

(For more on the timeline of permits and visas, as well as an expanded version of this incentives guide, download our free Permits & Paperwork Guide here).

What Counts as "Qualifying Production Expenditure" (QPE)?

Basically, money you spend in India on Indian goods and services with a few exceptions. Here are the headline items...

YES: Indian Crew & Cast wages.
YES: Accommodation, Catering, & Per Diems (paid in India).
YES: Equipment Rental (Cameras, Lights, Grip) from Indian suppliers.
YES: Studios, Construction, Design, Dressings, Props, Costume from Indian suppliers.
YES: All Post Production carried out in India.
NO: Your international flights to get here, domestic flights, and all local travel.
NO: Capital Expenditure.
NO: Wages paid to non-Indian crew (your DoP, Director, etc.).
NO: Equipment you bring with you on a Carnet.

Strategic Tip: This is where the "Obligatory Crew" issue becomes a benefit. Those extra lighting & camera attendants that always come with the gear in India? Their wages count toward your QPE and help you hit the 15% Indian Labor threshold for that extra 5% bonus.

FAQs: The Stuff Your CFO Wants to Know

Q: Is this a Tax Credit or a Cash Rebate?

A: It is a Cash Rebate (Reimbursement). You spend the money, we audit the accounts, and the government reimburses you. It is not a tax credit you have to sell to a broker.

Q: How long does it take to get the money?

A: Bureaucracy has its own speed. After the final audit, and other related documents, are submitted the India Cine Hub guidelines quote max 60 days to process the application for staged dispersal of funds. We manage the audit process to keep this timeline as tight as possible. The final 10% is released upon submitting the finished film with ICH logo and 'Filmed in India' credits along with confirmation that the film has been released for public (theatrical, festival, digital, OTT, streaming, etc.) viewing.

Q: What counts as "Significant Indian Content" (SIC) for that extra 5%?

A: To get this bonus, the India Cine Hub committee needs to see that your project "ticks the box" for Indian relevance. This usually means any one of the following:

At least 25% of your total film budget is spent in India.
Or, you have a lead character who is Indian.
Or, at least one of the Creative Heads of Department (Director, Animation Director, Director of Photography, Music Director, Writer) is an Indian National.
Or, the film portrays India, its culture, or heritage in a positive light.

Q: What exactly is "Qualifying Production Expenditure" (QPE)?

A: Basically, it's most of the money you spend in India on Indian goods and services with a few exceptions.

YES: Indian Crew & Cast wages, Accommodation, Art Dept, Costume, Equipment Rental from Indian suppliers.
NO: Travel, non-Indian crew wages (your DoP/Director), Capital Expenditure, and legal fees paid abroad.
Strategic Tip: Renting gear locally in India (rather than flying it in) increases your QPE, effectively giving you a 40% discount on that rental price.

Q: Can we combine this with State Incentives?

A: Yes! This is the "Secret Weapon." States like Uttar Pradesh and Madhya Pradesh offer their own subsidies. We can sometimes stack these state incentives on top of the central 40% rebate to drastically reduce your bottom line.

Q: I’m a producer with a smaller budget from a country with a Co-Production treaty with India (e.g. UK). Can you help?

A: Absolutely. If India and your home country have a co-production treaty, your project might qualify as an Official Co-Production. If so, the minimum spend threshold (INR 30M) vanishes, and you are eligible for the rebate regardless of your budget size. Currently this includes Australia, Bangladesh, Brazil, Canada, China, Colombia, France, Germany, Israel, Italy, New Zealand, Poland, Portugal, South Korea, Russia, Spain, and the United Kingdom.

Ready to Budget?

Don't guess the numbers. Contact us for a quote. We can provide a preliminary Movie Magic budget that highlights exactly which line items will qualify for the 40% rebate, giving you a clear picture of your real production costs.

Incentive applications shall be evaluated by a Special Incentive Evaluation Committee (“SIEC”) only after all prescribed documents and additional documents, as requested by ICH, have been submitted. The decision of the Committee is final.