Indian Animation Industry-An Analysis

Indian Animation is creating an identity for itself today in the global marketplace. The animation industry is expected to go up from $0.6 billion in 2001 to $1.5 billion by 2005, according to recent NASSCOM figure estimates. India has the world's largest entertainment industry, a robust software industry and also skilled manpower, all essential ingredients for the growth of Animation industry. The prominent players include UTV Toons, Crest Communications, Pentamedia Graphics, Padmalaya Telefilms, Moving Pictures and Toonz Animation. The animation studios are catering to the requirements of segments such as feature films, television programmes, advertisements and computer games. Currently, Indian animation players are predominantly catering to the needs of overseas television programme production companies. The biggest challenges that the Indian animation industry is facing are awareness, skills and manpower development, infrastructure and financial support, which would require industry and government to partner.

Animation Industry in India

The Animation Industry in India though a late starter, is considered as one of the fastest growing segments of the entertainment and media industry. The Animation Industry in India gained significance as an outsourced destination for animation work due to low cost, skilled labour as its many advantages. In the recent past Indian animation companies and animation studios have been moving up the value chain to create their own intellectual property rights with Hanuman, Roadside Romeo, etc. and partnering with international studios to produce animated properties for the global audience.Though a majority of the work done by the animation industry in India is outsourced work, this is expected to change in the future with increased demand from the domestic entertainment industry.
The Indian animation industry in 2007 was estimated at USD 0.31 billion and is expected to grow at CAGR 24% to reach USD 0.94 billion by 2012.