The Hindu Business Line : `Govt working on animation package'

The National Association of Software and Services Companies (Nasscom) today said the Indian animation and gaming industry is poised for a high growth future, but it needs to contend with necessary infrastructure and lack of trained human resource base.

Releasing animation and gaming industry report here, the Nasscom President, Mr Kiran Karnik, has said the country requires a policy framework that provides for certain incentives and common support infrastructure for start-ups that can help accelerate the sector growth.

The Prime Minister's Office is seized of the matter relating to the animation and gaming sector as a part of the ICT-sector related issues, and is examining concerns to work out necessary strategies, Mr Karnik said.

The report indicates that the animation and gaming industry are poised for a compounded annual growth rate of 25 per cent and 72 per cent respectively over 2006-2010.

The Nasscom Chairman, Mr B. Ramalinga Raju, said: "While the industry is export-led, we are seeing the trend of increasing focus on domestic demand. Market drivers such as introduction of special effects and regional animated films are providing impetus to interest in animation movies in the domestic market."

The Indian gaming industry, estimated at $48 million in 2006, is expected to cross $424 million by 2010. On the other hand, the domestic animation industry was forecast to reach $869 million by 2010. This would still be fraction of the global animation market estimated at $59 billion and poised to touch $80 billion by 2010. In comparison, the worldwide market for animation from demand perspective stood at $21 billion in 2006, and is expected to reach $42 billion by 2010.

Report highlights

From an Indian market perspective, the report stated that about 300 animation companies employed approximately 12,000 people in 2005 and had some 3,000 freelancers. To grab a larger share, the report expressed need for focussed human capital development for animation and gaming sectors and for Government policy support in the Indian industry.

From an employee base of about 16,500 in 2006, it is forecast to grow to 26,000 by 2010. The key constraint is the growing demand-supply gap in manpower availability that was expected to restrict the Indian animation industry's growth to $869 million against the potential of $1billion.

Referring to the global industry scenario, the report stated that the broadcast, including animation, industries in countries such as France, Singapore and Canada, have grown with the help of specific policy support extended by the local governments. This has ranged from assistance in manpower development, infrastructure, direct and indirect investments, to promoting industry recognition. The Government involvement was vital as training by companies alone would not be adequate to meet HR needs.

Land allotment

The State Principal Secretary, IT &C, Ms Ratna Prabha, announced that the State Government has allotted five acres of land for Nasscom office and to create a facility for animation academy.

The animation academy was pending for about two years and did not get adequate attention. The Government and the Nasscom agreed to expedite the project and possibly complete it by the next year ahead of the animation meet here.

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