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Indian Animation Industry Revenues to Reach $15Bn by 2008 - Survey

Monday, July 12, 2004

Indian Animation Industry Revenues to Reach $15Bn by 2008 - Survey

A recent study conducted by Andersen Consulting states that the Indian animation industry is expected to reach USD 15 billion by 2008.



Chetan S, Director-Business Development, Animation Training School, pegs the Indian animation industry at INR 550 million and expects a 30 percent annual growth for the next three years. He reckons that the country has emerged as a destination for outsourcing assignments from global studios such as Walt Disney Pictures and Cartoon Network. Although most Indian production houses still work on low-end projects, some of the top companies are slowly moving up the value chain.



A study by NASSCOM, a body of Indian IT service providers, forecasts that the global animation market to would generate revenues worth USD 50 billion to USD 70 billion by 2005. Animation production from Indian producers is expected to go up from USD 0.6 billion in 2001 to USD 1.5 billion by 2005.



However, the corporate view is a little different. According to SS Dahiya, Chairman and MD, Compudyne Winfosystems, not much work is happening on the 3D animation front in India, with shortage of requisitely skilled animators, acting as one of the major hurdles.



Despite the relative shortage, the cost of animation production in India is the lowest compared to destinations like Canada, Korea, Taiwan and Philippines. The cost of production of a half an hour animated programmed in the US is around USD 250,000 to USD 400,000. In Korea and Taiwan it is around USD 110,000 to USD 120,000 while in India it would be just around USD 60,000.



Reported by The Financial Express

posted by A-1 Technology @ 1:55 PM