Negotiations between the UK and India have begun for both countries to share expertise with each other over film production.

Culture secretary Tessa Jowell met the Indian Film Minister Jaipal Reddy in Delhi today to discuss developing a co-production treaty with India. They signed an initial statement of intent.

India is the biggest producer of movies in the world, with around 800 made every year. The eventual treaty is expected to have significant commercial benefits for both countries.

The government says it will enable film makers in the UK and India to pool their resources to create films which will benefit both countries financially and culturally.

Tessa Jowell said: "In today’s film industry it is increasingly hard to go it alone. Co-production is how much of business is done today. It makes sense for our industries to join forces so that we can raise our game even further. A co-production treaty would create the means to do this.

"I hope that together we would produce films that would be beneficial, culturally and economically, to UK and Indian audiences. And, importantly, a treaty would enable us to continue to compete on the world stage, drawing on the wealth of talent that both countries possess, both in front of and behind the camera."

She hopes that Indian films will benefit from British expertise and tax incentives when made here.

"A treaty would fit into our wider aim of producing successful co-productions that deliver economic and cultural benefits for both parties," Jowell added.

Since 1931 the Indian film industry has produced more than 67,000 films in more than 30 different languages and dialects. In 2001 a record 1,013 films were made there.

The UK is also looking to negotiate new co-production agreements with China, Morocco, Jamaica and South Africa. It already has such bilateral agreements with Australia, Canada, France, Germany, Italy, New Zealand and Norway.

These agreements will offer opportunities for film producers to qualify for a British film certificate and claim tax relief on production costs.