Key sings praises of Bollywood deal

New Zealand is throwing its arms open to Bollywood in the hopes of gaining both film revenue and jobs, as well as a boost in tourist numbers from India.

Prime Minister John Key and India's Prime Minister Manmohan Singh signed the film co-production agreement during their meeting last night.

Mr Key said while New Zealand film makers hoping to film in India would benefit, he expected most of the traffic to be from India to New Zealand, where several films had already been part-shot around Queenstown.

The main boon for New Zealand was an anticipated increase in tourist numbers.

"It's a massive industry. It really introduces the Indian population to New Zealand from a tourism perspective. That scenery has to be whetting the appetite of a lot of Indian travellers to come to New Zealand."

More than 30,000 Indians visited New Zealand over the past year - double the number of 2004.

Bollywood movies are considered instrumental in the increase in numbers. A noticeable spike occurred after last year's release of the blockbuster I Hate Luv Stories, which was partly filmed in New Zealand.

Mr Key will also visit Bollywood movie set Film City in Mumbai today to watch some scenes from The Players, part of which was filmed in Queenstown.

The agreement, under negotiation since 2007, allows film-makers in both countries to have their films given co-production status, putting Bollywood film-makers on the same footing as national film-makers when they are in New Zealand. It gives them access to funding and other incentives which national film-makers benefit from, and eases the path to bring over staff and equipment.

Film NZ chief executive Gisella Carr said such agreements would also be of direct economic benefit to New Zealand's screen industry.

"Bollywood is an increasing force in the world as India looks outwards to the West. The same can be said of China's growing external screen interests. This is why Hollywood, for instance, is busily establishing commercial relationships in Asia."

Mr Key has also been pushing for an airline to set up a direct flight from Mumbai to New Zealand to increase the numbers further, saying several airline companies now have the Boeing Dreamliners which could make the trip in one go.

Mr Key met Prime Minister Singh overnight, New Zealand time, after his official state welcome to India, where he has been given meetings with the who's who of India's political world.

The official welcome was a much more modest affair than originally planned after forecast monsoon rains led to the cancellation of the guard of honour. Instead, a brief ceremony was held inside Rashtrapati Bhavan, the President's estate where the British first handed over rule to India in 1947.

Mr Key then laid a wreath at Gandhi's memorial at Raj Ghat.

The free-trade agreement negotiations were expected to dominate his meeting with Prime Minister Singh.

The two Prime Ministers also signed an education agreement, setting up an Education Council to offer scholarships and internships in business schools and industry in both countries.