An Indian production company is to invest £13 million in the UK, the Deputy Prime Minister has announced, during a visit to a Mumbai film set as part of his UK trade mission to boost links between the two nations.

Vistaar Productions will make the multimillion-pound investment over the next 18 months, including in a new post-production facility in Manchester which will be used as a hub for the editing of Indian films being shot in the UK, creating jobs and attracting further investment from the Bollywood industry.

Nick Clegg launched the filming of the new Vistaar production Veda at the Taj Mahal Palace Hotel, greeting the cast and crew and operating the clapper board on the first shot.

The film, an Indian interpretation of Shakespeare's Hamlet, will be produced in both the UK and India and is due for release in the autumn of 2015.

The £13 million investment by Vistaar includes approximately £3.9 million for the British filming of Veda and £7.2 million in the new production Guru Dutt, which will be partly made in the UK.

Bollywood, based in Mumbai, is the largest film producing industry in the world with films predominantly in the Hindi language.

A number of Bollywood movies have been filmed in the UK, generating tourism to those locations from India and overseas, while the Indian film industry has shot more than 50 films in the UK over the past decade.

Mr Clegg hailed India's fast-growing prowess in the aerospace and hi-tech sectors on the final leg of his three-day visit to the country.

The Deputy Prime Minister opened a new Tech Hub and UK India Business Centre during a visit to India's hi-tech capital Bangalore.

The Lib Dem leader, who is travelling with a 40-strong business delegation, is spearheading the first UK trade mission to the country since the new Indian government was elected in May.

The Business Centre is the second to open in India, after Delhi, and provides support to UK businesses who wish to grow there, while the Tech Hub aims to assist 1,000 Bangalore start-ups in three years and link them with the UK.

Mr Clegg said: "India is at a major crossroads in its economic destiny, and Bangalore is a shining example of how technological expertise can be harnessed to create a powerhouse for growth.

"This city is among the top 10 preferred locations for entrepreneurs in the world, and home to more start-ups than any other city in India.

"What I see in Bangalore is that India's prowess in aerospace and hi-tech is growing fast.

"This is fertile ground for UK and Indian firms to do business, and that's been proven by the deals done today by UK companies setting up shop here in India."

While in Bangalore, Mr Clegg visited the Airbus India facility and will see the Hawk manufacturing facility at the aircraft division of Hindustan Aeronautics Limited.

Senior Government figures have made a series of trips to India since the coalition came to power in 2010 in an effort to create a new "special relationship" and strengthen trade with the emerging economic powerhouse.

Chancellor George Osborne and then-foreign secretary William Hague visited in July, while David Cameron has made three trips to India as Prime Minister.