latest market research report titled Animation Market in India 2014 describes the dynamics of animation production in this country. In India, the domestic market consumes just one-third of the entire production of animation and related works. But demand from the animation companies in India is expected to grow steadily over the next few years, following the success of international releases such as Life of Pi, Avatar and others. Many of these films had significant contributions from Indian animation production houses, who delivered high-quality work on a very strict time schedule.
The animation industry in India owes its success to the consistent demand from foreign clients, driven by a large English-speaking workforce, cost advantage of doing business in India, rise in the number of quality training institutes offering various programs in animation and digital production, and others. Owing to the potential for growth in this industry, the Government needs to take more proactive steps in organizing the sector, laying down rules and regulations, encourage production of more original content for the domestic market and enforce strict laws against violation of intellectual property rights. In future, animation in India should not remain confined to entertaining only kids, but evolve with more mature story-telling and content development to grow its audience.