The Indian government has approved an audio-visual co-production treaty between India and Australia to promote co-production of films.

The Union Cabinet greenlit the treaty last week with a view to promote co-production of films. Such pacts are umbrella agreements under which private and government agencies enter into contracts to produce films together, AIR News reported late last week.

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.

India has so far signed 15 Audio Visual Co-production Treaties with foreign countries.

Australia has emerged as a preferred destination for shooting Indian films. India is fast emerging as a major content hub for film makers looking for new projects as it has abundance of exotic locations, talent pool, relatively cheaper cost of production and post production works, making it a favoured destination of foreign filmmakers.

Some of the popular films shot in Australia include ‘Chak De’, ‘Dil Chahta Hai’ and ‘Bachna Ae Haseeno’.

The highest profile Australian co-production shot in India is BAFTA-winner ‘Lion’ starring Dev Patel, Variety added.