Steven Spielberg and DreamWorks are not alone in Bollywood.

On the fourth day of India’s festive season, Bollywood fans have one more reason to celebrate Friday, when Twentieth Century Fox agreed to a multi-film deal with one of the most successful producers in Indian cinema, according to sources familiar with the accord.

In a sign that business is not slowing in Hollywood or Bollywood, despite slowing financial markets in America and abroad, the deal, announced October 4th, signifies Hollywood’s commitment to reach new audiences by investing in film production abroad.

“While most of the international markets tend to have Hollywood movies, increasingly a large portion of these local markets is made up of local films,” Jim Gianopulos, chairman of Fox Filmed Entertainment told the international press corps on Friday. “We felt we could make a contribution to the [local] market … by bringing our expertise in marketing and distribution.”

The major players in the deal include News Corporation-owned Fox Star Studios, its sister company and Asian broadcaster Star, and Bollywood producer Vipul Amrutlal Shah, creator of Singh is Kinng and Namaste London.

According to sources, the agreement stipulates Fox Star will produce two forthcoming Shah productions, with an option for additional movies.

Partnering with Fox Star gave Shah a chance to “create films that will appeal to audiences around the globe.”

“We have to partner with the best technical and creative talent while keeping the Indian soul in our films intact,” he told the media shortly after the deal was announced.

In an unrelated story, Walt Disney and Sony Pictures Entertainment came to terms in a similar production deal in Bollywood.

Disney plans to produce a Bollywood version of High School Musical. The recently released Saawariya, a three-hour Bollywood epic, was Sony’s first distribution attempt in India.

The agreement, reached on October 4th, came shortly after a coalition of labor unions representing Bollywood actors and workers ended a brief work stoppage.

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