Inside India’s Film Incentive War: How Indian States Are Competing for Global & Local Shoots

Introduction For productions requiring structured support, film incentive structuring India is available for this region.

India has witnessed a dramatic transformation in the way its film industries interact with government policy. With the globalisation of entertainment and the rise of OTT platforms, states are no longer passive backdrops for Bollywood productions. Instead, they are active participants in a high-stakes competition to attract domestic and international filmmakers. From the forests of Madhya Pradesh to the palaces of Rajasthan, Indian states are offering substantial financial incentives, streamlined permissions, and cultural assets to lure production houses. These efforts are not just about vanity; they’re about job creation, tourism development, infrastructure investment, and international visibility.

Madhya Pradesh: India’s Most Aggressive Film Incentive State

Madhya Pradesh (MP) has emerged as a national leader in proactive film policy. Its Film Tourism Promotion Policy (2025) provides generous subsidies, particularly for projects that shoot a significant portion within the state. MP has strategically designed its policy to benefit not only feature films, but also OTT/web-series, documentaries, and international co-productions.

Key features of the MP policy include:

Subsidy up to ₹2 crore or 25% of Cost of Production (COP) for films with at least 75% shoot in MP.
₹1 crore for projects with 50% of principal photography in-state.
OTT/web series can avail subsidies up to ₹1.5 crore.
Special incentives for long-format television series with 180+ shooting days.
₹40 lakh for international-level documentaries.
For international productions or high-budget (₹100 crore+) films, the state offers a 10% subsidy up to ₹10 crore, provided at least 7 days of shooting is conducted in MP.

Additional perks:

₹25 lakh bonus for including three or more local lead actors.
Capital grants up to ₹5 crore for infrastructure development like studios and post-production facilities.
Permissions processed under the Public Services Guarantee Act, ensuring 85% turnaround through a single-window clearance system.

Real-world impact: MP has successfully hosted multiple mainstream Hindi films and OTT originals. Its landscapes have doubled for forest reserves, rural backdrops, and historical locations, making it a highly adaptable and cost-effective shooting environment.

Rajasthan: The Heritage-Film Nexus

While MP positions itself as a modern production hub, Rajasthan takes a heritage-centric approach. Its 2022 Film Tourism Promotion Policy, with an ambitious 2025 draft in circulation, uses state-owned forts, palaces, and desert landscapes as cultural capital. Rajasthan links cinema with tourism by offering logistical and financial support with clear branding goals.

Highlights of Rajasthan’s incentives:

15% subsidy on Qualified Cost of Production (QCOP) capped at ₹2 crore.
Draft 2025 policy proposes an increase to approximately 30% QCOP.
Eligibility includes a minimum in-state expenditure of ₹2 crore and use of at least 15% local crew.
Filmmakers gain free access to government-managed heritage sites.
Discounts of up to 50% at Rajasthan Tourism Development Corporation (RTDC) hotels (up to ₹10 lakh).
Mandatory branding requirements include displaying Rajasthan tourism logo and state government credits in final releases.

Rajasthan continues to be a favourite for both Bollywood epics and international historical films. Productions like “The Best Exotic Marigold Hotel” and major period dramas have tapped into its visually rich architecture.

Uttar Pradesh: The Rising Contender for Film Shoots

Uttar Pradesh (UP), India’s most populous state, has quickly emerged as a competitive destination for film production. With its 2023 Film Policy, the state offers direct financial subsidies alongside location and tax support, targeting both mainstream Hindi films and regional content.

Key incentives in Uttar Pradesh:

Up to ₹2 crore subsidy for Hindi films with at least 50% of the shoot in UP.
₹1 crore subsidy for regional language films.
₹50 lakh to ₹1 crore support for web series and long-format TV content.
Additional 5% bonus subsidy for projects employing local artists and technicians.
Government location fees are either heavily discounted or fully reimbursed.

UP’s aggressive positioning is further enhanced by film offices in Lucknow and Noida, which coordinate shoot logistics and permissions. With iconic sites ranging from Varanasi ghats to Agra’s Mughal architecture, the state provides a visually diverse canvas for filmmakers.

Maharashtra: Bollywood’s Home with Institutional Support

Despite being the hub of India’s film industry, Maharashtra still offers specific incentives to attract and retain productions, especially Marathi cinema and independent films. Its 2022 incentive scheme focuses on infrastructure, municipal permissions, and production rebates.

Key support mechanisms include:

₹1 crore subsidy for Marathi feature films that meet cultural and quality benchmarks.
Mumbai and Pune offer tax waivers at municipal level for qualifying productions.
Single-window film permission system via the Maharashtra Film, Stage & Cultural Development Corporation.
Subsidies also available for short films, documentaries, and student projects.
Infrastructure access to Mumbai’s Film City and allied services across post-production, sound, and set construction.

While Maharashtra doesn’t offer the highest cash incentives, its soft infrastructure — professional crew base, studios, and access to top talent — remains unmatched.

Odisha: Culture-Driven Subsidies for Regional and International Films

Odisha’s 2022 Film Policy prioritizes regional culture and employment generation. With generous fiscal support and a distinct focus on Odia identity, the state encourages both domestic and international co-productions.

Notable features:

Up to ₹2.5 crore subsidy or 50% of production cost for eligible films.
100% SGST reimbursement for in-state production expenses.
Additional bonuses for projects employing local cast and crew.
Subsidy enhancements for films showcasing Odia heritage, language, and tourism destinations.
Specific provisions for international co-productions and national collaborations.

Odisha’s strategy revolves around nurturing its local film ecosystem while attracting outside investment that aligns with its cultural ethos.Emerging State Incentive Policies

Gujarat

Subsidy up to ₹5 crore or 25% of production cost
100% SGST reimbursement
Incentives for using local talent and crew
Streamlined single-window permissions

Gujarat has made key updates to its film policy post-2022 to capitalize on growing interest in Gujarati cinema. The state is also launching a film university in Gandhinagar.

Kerala

30% subsidy up to ₹3 crore
Grants for culture-driven films
Single-window clearance by KSFDC
Post-production incentives

Kerala prioritizes ecologically responsible filmmaking and has included sustainability audits as part of its incentive disbursal policy. International co-productions with South Asia are a current focus.

Tamil Nadu

Tax exemption for Tamil films with cultural value
Location support and infrastructure access
Separate grants for documentaries and short films

The Tamil Nadu government works closely with the South Indian Film Chamber of Commerce and allows creative producers to rent public venues at discounted rates. Projects in classical art, dance, or literature are fast-tracked.

Karnataka

₹2 crore subsidy for Kannada films
Additional support for dubbing & translations
Discounts at state-owned filming locations

Karnataka’s nodal agency collaborates with the Kannada Development Authority to prioritize linguistic preservation through cinema. Bengaluru also promotes animation and VFX subsidies.

Telangana

₹3 crore incentive for Telugu & co-productions
Access to Ramoji Film City
Tax relief and skill development programs

Telangana’s incentives are tailored for large-scale action and historical dramas. Its startup ecosystem supports post-production and VFX innovation linked to film.

West Bengal

Up to ₹2 crore or 30–40% of production cost
Promotion support for shooting in Kolkata and heritage sites
Film Facilitation Cell under WBIDC

West Bengal’s incentives are directed toward independent and festival-bound films, with curated partnerships with film markets in Europe and South-East Asia.

Assam

45% subsidy for regional language films
Bonus for cultural representation and tribal themes
SGST reimbursement

Assam is increasingly being used as a location for socio-political cinema and is backed by regional filmmaker development programs.

Conclusion: The Race to Attract Global Film Productions

India’s state-level film incentive landscape is maturing rapidly. Madhya Pradesh and Uttar Pradesh are front-runners with financial scale and process efficiency. Rajasthan and Odisha focus on heritage and cultural integration. Maharashtra leverages its infrastructure, while emerging players like Gujarat, Kerala, and Assam use aggressive fiscal incentives to boost visibility.

The competition between states is leading to increasingly filmmaker-friendly environments, benefiting both domestic cinema and international co-productions. As India continues to evolve into a global film production hub, regional governments play a critical role in defining the creative and economic future of the industry.

Producers now have a wide spectrum of options when selecting locations—from snow-capped Himalayan regions to the deserts of Rajasthan, tropical forests in Kerala, and historical cities like Lucknow and Kolkata. With digital streaming platforms intensifying demand for regional stories and visually diverse backdrops, the importance of such incentive-driven ecosystems cannot be overstated.

States that align their cultural narratives, filming support, and digital readiness will ultimately shape the cinematic future of India’s soft power diplomacy

Related Articles on Film Incentives and Production Locations

• Film Production Incentives in Indian States: A Comparison

• Global vs Indian Film Incentives: A 2025 Comparative Report

• Line Producing and Shooting in Rajasthan: A Guide

• Filming in Kashmir as an Alternative to Switzerland and Europe

• Why Delhi is Emerging as India’s Strategic Line Production Hub

• Why Mumbai Remains the Unofficial Capital of Line Production in India

• Tax Benefits for Filming in India