The Hindu : Nasscom strategy to propel animation industry

Online edition of India's National Newspaper
Saturday, Jun 21, 2003

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Business

Nasscom strategy to propel animation industry

By Our Special Correspondent

HYDERABAD JUNE 20. The National Association of Software and Service Companies (Nasscom) has come out with a four-pronged strategy to give a boost to the nascent Indian animation industry and in the process it is setting the target of doubling the size of the industry in the next three years.

The Nasscom study, which charts out the strategy to propel the animation industry, was released at the `Animation 2003' organised by the Nasscom here on Monday. It puts the animation production from Indian producers at $600 million in 2001 and projects it to $1.5 billion by 2005. The global animation market is expected to generate revenues of $50 billion to $70 billion by 2005, it says.

Later addressing a press conference, Kiran Karnik, President, Nasscom, Amit Khanna, President, eE@, and Pawan Kumar, organising committee chairman, said they were also hopeful of government to government bilateral treaties among India, the U.K. and Canada materialising in the next six months for co-production of films. Also post 2005, a number of countries would be opening up for foreign content, they noted. The four-pronged strategy is to focus boosting domestic demand and outsourcing, accessing cheap finance and developing worldclass infrastructure and manpower talent.

India has the world's largest entertainment industry, a robust software industry and skilled manpower, all of which are essential for this sector. But there are also challenges such as need to increase awareness, skills and manpower development, infrastructure and financial support which would require industry and government to partner.

To increase the global and domestic demand for Indian animation content, it has recommended developing a `national brand indentity' in subject matter and style of animation. Representation in major international animation markets, co-production treaties with countries such as Canada and arrangements with producers and studios in the U.S. are some of its other recommendations.

It is also seeking a number of incentives for the industry. These include import of hardware and software (for studios) free of customs duties, setting up of animation parks (like software technology parks), incentives for Indian IT companies to undertake product development effort in animation software.

It also wants funding mechanisms to be created to encourage development of original animation productions. A special fund (body) for extending soft loans to original animation productions, industry status to animation sector, and setting up of another fund for original concept development, and manpower capability in scriptwriting. Another major hurdle seen is the demand supply gap in manpower, particularly animators. Estimates of trained animators in India vary from 300 provided by the Chief Minister, N. Chandrababu Naidu (at the conference), to 4,000 (by speakers at the conference). Mr. Karnik said on the other hand the demand was put at about 25,000, and the potential at 50,000.

The Nasscom also proposes to prepare a more comprehensive document listing specific measures that need to be taken to give a boost to the industry, which will of course include incentives.

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