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. (Source:Ficci-PwC Entertainment and Media report 2008)

The Indian animation industry was estimated at $354 million in 2006 and is forecast to reach $869 million by 2010. Animation in India is currently riding on two key factors - a large base of highly skilled labour, and low cost of production. While the industry is gaining prominence steadily, several important factors such as the government's role in supporting the animation industry, and producing original content locally.
In 2009, the state of the animation industry in India, was growing at a CAGR of 30%, is estimated to reach US$ 1.5 billion by 2005
Some of the other estimates of the NASSCOM report on animation indicate the following:

• The global entertainment market will generate a demand for animation production services of the order of US$ 37 billion by 2003
• In the non-entertainment segment the demand for animation production services will touch US$ 14.7 billion by 2015
• The global film/TV program production market will create a US $ 17.5 billion revenue opportunity for animation production houses
• The Indian gaming industry was estimated at nearly $48 million in 2006 and is expected to cross $424 million by 2010.