"We are seeing interest (in Indian cinema in Britain and British cinema in India) soar," Jowell told reporters at a news conference. "A treaty would help Indian filmmakers get tax benefits in Britain and vice versa."
For Indian filmmakers get co-production funding and related benefits, 30 percent of the film has to be based in Britain. The reverse would be true for British filmmakers.
Britain is looking for such agreements with five countries - China, Morocco, Jamaica, South Africa and India.
In the recent past, mega hit Bollywood films like "Dilwale Dulhaniya Le Jayenge" and "Kabhi Khushi Kabhi Gham" has been shot in Britain.
"Our film industry feels that they can make better films if such an agreement is in place," said Jowell, who is also pitching for India's support for London's bid to host the 2012 Olympics and offering assistance to New Delhi in organizing the 2010 Commonwealth Games.