Indian Animation Industry: Moving Up the Value Chain?

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Excerpts

It was in the 1990s that the Indian animation industry witnessed a boom. Ram Mohan and Sako were determined to make the animated series based on the Ramayana and so Ram Mohan traveled to Japan to make it happen...

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The low entry barrier and the lure of easy dollars that could be earned by providing cut-price work for the animation studios from the West resulted in several small companies crowding the Indian animation industry.........

The Indian film industry, which is the second largest in the world, was not involved in animation in a big way. It had been using animation to a limited extent in live action movies, mostly in the form of visual effects........

The Indian animation industry had been growing at exceptional rates since the late 1990s, but experts felt that some serious challenges remained in the way of sustaining such growth rates. A major challenge for the industry was the skilled manpower crunch. Even though India had a large English speaking labor force, there was a dearth of readily employable skilled animators.......

Industry experts felt that while the growth of the animation industry in India had been phenomenal, there was an opportunity for it to grow even more. The low cost of production was a huge advantage. For instance, the production cost of a half-hour animated movie in India cost around US$ 60-70,000 while in the US, it was around US$ 250,000-300,000, according to NASSCOM's analysis...

Exhibit I: The Animation Industry Value Chain
Exhibit II: Key Players in Indian nimation industry
Exhibit III: Business Models Adopted by the Indian Players
Exhibit IV: The Global Animation Industry
Exhibit V: Gaming Industry in India
Exhibit VI: NASSCOM Recommendations to the Industry for Further Growth