NASSCOM releases report on animation and gaming industry in India 

by Team Digit / Aug 28, 2009 14:41:54 IST / Tags: NASSCOM, gaming industry, animation industry

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NASSCOM, the apex body of IT software and services, has released its most recent report on ‘The Animation and Gaming Industry in India’, put together by Ernst & Young. The report makes it clear that although growth has been limited by the current economic down-turn, growth in the industry is still strong, with the animation and gaming industries in India project to grow at annual rates of 22 and 49 per cent respectively during the next few years (to 2012).

 It is clear from the report that the relative size of the gaming industry compared to animation in general is smaller here than in, say, Europe or the US. However, the expected growth rates will tend correct this. 

 It was stated that currently 15,000 people work in animation and gaming in India, but the demand is for a similar number in the next three to four years. A couple of people on the panel discussion following the presentation complained of the often poor education in some institutes offering course in animation. To help correct this, NASSCOM is helping develop a system of accreditation, which would help improve standards and weed out the poor institutes.

 Currently, 90 per cent of Indian animation revenues come from international sources, and this makes the industry vulnerable when economic problems hit the US and Europe. NASSCOM therefore intends to encourage the government to make certain tax concessions and other moves in order to help develop local demand.

In analysing the gaming industry here, NASSCOM place PCs (13 per cent) in last place, after online (22), mobile (26) and consoles (39). However, this measure of market share is based mainly on software sales, and with the amount of piracy on the PC, may not be reflective of actual real-world data. NASSCOM also hopes the government and industry will work towards combating this piracy.




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