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Nair's inspiration for the film came from the spirit of Bombay's street children and how they lived. Production began in early 1988, and the film was co-financed by the National Film Development Corporation of India. Nominated for the Academy Award for Best International Feature Film at the 61st Academy Awards, the film was India's second film submission to be so nominated. After its initial release on 11 May 1988 at the 1988 Cannes Film Festival, Salaam Bombay! achieved significant critical acclaim. It won the Caméra d'Or and Audience award at the Cannes Film Festival. The film won the National Film Award for Best Feature Film in Hindi, National Board of Review Award for Best Foreign Language Film and three awards at the Montreal World Film Festival. The film was among the list of "The Best 1,000 Movies Ever Made" by The New York Times.