Cost Advantages of International Film Production in India

Discover how India offers cost advantages for international film production with rebates, skilled talent, and iconic locations used in movies like Slumdog Millionaire.

Flying Stone Filmz

8/20/20253 min read

For decades, India has drawn international filmmakers because of its scenic locations and cultural diversity. From urban skylines of Mumbai and Kerala’s blackwater to royal palaces of Rajasthan and ghats of Varanasi, India is at the heart of cinematic inspiration.

However, more than just diverse landscape, foreign filmmakers also frequently choose India for its cost advantage. International film production in India is not only creatively rewarding but also financially strategic compared to many other destinations.

In this blog, we will explore how India delivers unmatched cost benefits for international productions, supported by government incentives and lower production costs.

Attractive Incentive Structure

To attract more international filmmakers, India has designed special incentive structure that can help them save capital. The Film Facilitation Office (FFO), under NFDC and Invest India, administers a cash rebate system that makes filming here financially rewarding. Filmmakers get:

  • Up to 30% cashback on Qualifying Production Expenditure

  • 5% bonus if filmmakers employ 15% of Indian crew

  • 5% if the film includes Indian cultural content

  • A maximum cap of ₹30 crore (around USD 3.6 million) per project


This is especially useful for independent filmmakers or production houses for limited budget. By helping foreign filmmakers, India promotes employment opportunity to its citizens and cultural promotion in foreign land, improving tourism.

Lower Production Costs and Skilled Talent

Along with impressive incentives, India also has affordable workforce that are as skilled as any western countries.


For example:

Animation in the USA can cost around $125 per hour, while in India, the same animation will cost around $50.

Along with skilled animators, India also has amazing cinematographers, art directors, set designers, and production assistants that offer high expertise and filmmaking experience at a lower cost compared to the west.

This is a profitable situation for foreign filmmakers as they can get cost benefits from India’s skilled workforce, along with an additional 5% bonus for employing Indian crew.

Simplified Logistics and Multi-State Incentives

Shooting a film in India is a complex process. It involves permits from India’s Ministry of Information and Broadcasting, along with special permissions from different states depending on the location and visas for all the cast and crew.

Working with an international film production company can help you simplify these permissions and clearances. This allows filmmakers to focus on filming rather than getting stuck in paperwork.


Moreover, over 25 states in India have their own incentive structure and location specific perks for foreign filmmakers. This state-level benefits can further reduce the film production cost.

Global Comparisons and Competitive Edge

Countries like Italy, Canada, New Zealand and more also have attractive incentives for foreign films, so what makes India so popular?

It’s a combination of baseline cashback and cultural bonuses. Not many countries can match that when paired with an affordable workforce.

India is also known for its production agility. While Hollywood follows a rigid process, Indian crew that adapt to fast turnaround and tight-budget optimisation.

This agility further reduces transaction costs and allows filmmakers to work efficiently without increasing the budget.

Popular Hollywood Movies Shot in India

Here are some of the renowned Hollywood films that partnered with Indian production companies:

  • Slumdog Millionaire (2008): It is a movie that highlighted India in the spotlight for the world to see. While the movie was financed by British production house, many Indian crew were used as assistant directors, set designers, and local cinematography teams. The film went on to win 8 Academy Awards, highlighting the brilliance of Indian production houses.

  • Extraction (2020): Extraction, produced by the Russo Brothers and starring Chris Hemsworth, was a high-stakes rescue operation movie shot in Gujarat. Indian production houses helped with location scouting, providing cinematographers and extras.

  • The Best Exotic Marigold Hotel (2011): This British period comedy perfectly captured the royal atmosphere of Rajasthan. Indian production companies helped with logistics, hiring local crew and managed required permits. The success of the film and its sequel showcased India’s visual and technical brilliance.

Strategic Insights for Foreign Filmmakers

To maximise the cost advantages, international filmmakers should:

  • Hire a local crew and work in states that provide additional incentives

  • Partner with an International film production company to help with permits, logistics, and skilled workforce

  • Take advantage of India’s diverse landscape. You can shoot in sandy dunes, clean beaches, and snowy hills, while also showcasing different culture.

Conclusion

India is not just a destination for cinematic storytelling; it is a cost-efficient hub for international film production. With layered incentives, affordable skilled talent, simplified logistics, and diverse landscapes, India offers advantages that few other countries can match.

At Flying Stone Filmz, we support international filmmakers by providing cultural integration, technical assistance, bilingual fixers, and seamless crew onboarding. Our production company has worked on international films like ‘Hector and the Search for Happiness’ and ‘Fire in the Blood’. Along with international support, we also help with distribution, line production, co-production and cashflow.

Cost Advantages of International Film Production in India Compared to Other Destinations