HONG KONG – A bilateral co-production treaty between India and Canada has come into effect.

The pact allows films made using the treaty to be considered as local content in both jurisdictions.

A signing ceremony will be held on Wednesday (July 9) in Mumbai’s Four Seasons Hotel. But the event will essentially be a formality.

The two countries signed the long–awaited treaty in February this year. It has subsequently been ratified and entered into effect on July 1.

The Indian government says it hopes that the treaty will encourage more Canadian films to use India as a location. Indian film-makers may now also apply for Canada’s generous subsidy and incentives schemes.

Previous collaborations have notably included Richie Mehta’s “Amal,” and Toronto-based Deepa Mehta’s “Cooking With Stella.”