India signs co-production agreement with Italy

Italy has become the first European country to sign a film co-production agreement with India.

The agreement will enable Indian filmmakers to qualify for an Italian certificate, making them eligible for tax relief under Italian law as well enabling them to tap Italian technical expertise. Similar treaties are also under consideration with China, Canada and Germany.

"In order to give global dimension to Indian cinema, we have signed co -production treaty with Italy. The treaty with the UK is going to be signed on December 5 and negotiations are at an advanced stage with Germany, China and Canada," said Jaipal Reddy,Union minister for culture.

Reddy pointed out that the Indian entertainment industry is growing at a rate faster than the country's economy.

"The rate of India's economic growth is 7 per cent, while growth in the entertainment sector is 18 per cent," he said.