The governments of India and Germany have announced a co-production agreement designed to promote both countries’ film and television industries and better prepare them to compete against the Hollywood juggernaut.

However, according to a Government of India release, the deal will also make it advantageous for Canadian, European and US companies to outsource 2-D and CGI animation work to the continent.

‘The cost-competitive post-production sector of the film industry will stand to gain from the agreements,’ the release states.

Productions that are made under the terms of the agreement will be considered ‘national films,’ and are eligible for a number of tax and grant incentives. As well, the cost of the promotion of projects officially deemed co-productions will be reimbursed within 24 months.

The complete terms of the agreement have yet to be announced, we’ll have ’em when they’re available.