The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday retrospectively approved an agreement on film co-production between India and Israel, an official statement said.
The agreement was signed by Modi and his Israeli counterpart Benjamin Netanyahu here during the latter's visit to India last month.
The co-production of an Indian film means that its producer can access global funds and can collaborate on the script, talent and distribution at international level.
Co-production of a film under this treaty will qualify it to be the national production both in India and Israel.
"This will enable a common pool of creative, artistic, technical, financial and marketing resources of the two countries," the statement said.
The co-produced films will also be eligible for their participation as domestic productions in film festivals of both the countries and any other incentives which are available for carrying out production and post-production work in any of the countries.
"The signing of the pact will lead to mutual exchange of art and culture, create goodwill and better understanding among the people of both the countries as well as various aspects of film making.
"It will also help in generation of employment among artistic, technical as well as non-technical personnel," the statement said.