New Delhi, May 13 (IANS) Britain and India Monday signed a treaty to co-produce films and the two countries are expected to make as many as 10 movies within the first two years.

'Britain is seen as the world's number one market for Bollywood productions outside India. With Britain-India film co-production agreement, the opportunities for Indo-British partnerships in the film industry are sure to increase,' said Creon Butler, British Deputy High Commissioner, in a press statement.

The treaty will also contribute significantly to the strengthening of the skills base in India and Britain.

In 2005 more than 2.5 million watched Hindi films in Britain and Indian films accounted for over 16 percent of all British releases.

Andy Burnham, the British Secretary of State for Culture, Media and Sport, said: 'India and Britain both have vibrant film industries and bringing them together in this way opens the door to some exciting new collaborations. Our countries have close cultural and historical connections and it is great that our film industries will be able to work more closely together to develop this further.'

Negotiations on the detailed annex to this agreement have now been completed. Once constitutional procedures have been completed in both countries, the agreement will come into force.

This treaty with India is Britain's seventh bi-lateral co-production treaties.