Animation industry to grow at 27% CAGR: NASSCOM

The animation industry in India is estimated to be at $460 million (Rs 2,162  crore) in 2008 and set to grow at a CAGR of 27 per cent to reach $1,163 million (Rs 5,466.1 crore) by 2012, says a report released by the IT industry body NASSCOM at its annual 'NASSCOM Animation and Gaming India 2008'  in Hyderabad.

The market has been defined as animation entertainment at $120 million (Rs 564 crore), animation education at $53 million (Rs 249.1 crore) and custom content development at $187 million (Rs 878.9 crore) and multimedia/web design at $100million (Rs 470 crore).

The education segment is projected to have the maximum growth rate at about 40 per cent per annum. By the end of 2008, the gaming industry in India is expected to value at $212 million (Rs 996.4 crore), expected to reach $1,060 million (Rs 4,982crore) by 2012 at a CAGR of 50 per cent.

“The world is looking towards India as a gaming and animation hub and we believe that India is well placed to leverage this opportunity. Indian gaming and animation industry has outpaced the growth rates of its counterparts and the last few years have seen the industry evolve and mature to deliver high international standard projects. Some of the inherent factors that have contributed to India’s rise in the animation and gaming space are availability of the right skill sets, growing maturity of animation studios, increase in number of co-production ventures, development of intellectual property, growing consumer demand from the domestic market and of course, cost attractiveness,” said Som Mittal, President, NASSCOM.

As part of the NASSCOM’s endeavor to promote the creation, development and maturing of the ecosystem of Indian animation industry, the forthcoming NASSCOM Animation and Gaming India 2008, has specially included a session on ‘Super Pitch’.