Why in news?

The Union Cabinet has approved the signing of an Audio Visual Co-production Treaty between India and Australia, which is aimed at facilitating joint production of films between the two countries.

About the treaty:

• Audio visual co-production treaties are enabling documents which facilitate co-production of films between two countries, adding that under such umbrella agreements, private, quasi-government or governmental agencies enter into contracts to produce films together.
• India has so far signed 15 audio visual co-production treaties with other countries.
• Australia has emerged as a preferred destination for shooting of Indian films. India is fast emerging as a major content hub for film-makers looking for new projects.
• India has abundance of exotic locations, talent pool and relatively cheaper cost of production, making India a favoured destination of foreign film-makers.

Advantages of the treaty

• According to the co-production treaty, the respective contributions of the producers of the two countries may vary from 20% to 80% of the final total cost of the jointly produced work.
• The proposed agreement will boost ties with Australia, lead to exchange of art and culture, showcase the soft power of our country and lead to generation of employment among artistic, technical as well as non-technical personnel engaged in audio visual co-production, including production and post-production work.

• The use of Indian locations would increase the prospects of the country becoming a preferred film-shooting destination and also lead to inflow of foreign exchange, it said.