The Indian animation industry is expanding quickly, and with an increase in the number of animated series and films created there, it has drawn audiences from around the world and many of India's works have been released internationally. The expanding popularity of OTT, the rise in kids broadcasting viewers, and the accessibility of inexpensive internet connectivity all contributed to an increase in demand for animation. The animation business has expanded by 24%, and by 2024, it is anticipated that the animation and VFX market will be worth Rs 180 billion.
As Per IBEF (India Brand Equity Foundation):
Source: India Brand Equity Foundation
Advantage Animation Industry in India
Robust Demand:
- According to a report published by IAMAI and Kantar Research, India internet users are expected to reach 900 million by 2025, from ~622 million internet users in 2020, increasing at a CAGR of 45% until 2025.
- The advertising-based video on demand (AVoD) segment is expected to rise at a CAGR of 24% to reach US$ 2.6 billion by 2025.
Opportunities:
- According to a FICCI-EY report, within the M&E sector, TV is expected to remain the largest segment and likely to post a CAGR of 7% to Rs. 847 billion (US$ 12.01 billion) by 2023.
- The Indian mobile gaming market is poised to reach US$ 7 billion, in value, by 2025.
Support Policy:
- The Government of India has increased the FDI limit from 74% to 100%.
- In November 2021, the government announced that it is working towards creating a National Centre of Excellence for AVGC (animation, visual effects, gaming and comics).
Additional Investments:
- FDI inflows in the information and broadcasting sector (including print media) stood at US$ 9.79 billion between April 2000-June 2022.
- The rapid growth of OTT channels, increased emphasis on animated intellectual property (IP) content and larger investments in VFX by studios has provided animation and VFX studios with opportunities in both domestic and international markets.
