'Demand for animation work from India to grow at 20%'

Demand for animation related work from India is expected to grow at a healthy rate of about 20 per cent, according to a Nasscom study.

Nasscom, the apex body representing the interests of the software industry, also indicated that unless issues related to physical infrastructure, marketing and funding were addressed, industry growth could get impacted going forward.

Speaking to the media on the sidelines of the Nasscom Animation India 2005 summit, Nasscom president Kiran Karnik said that the animation industry was capital intensive, needed sophisticated technology and involved a long gestation period.

"Therefore, funding is required to help the industry grow," Karnik said. The animation industry earned estimated revenues of between $200 million and $300 million this year.

"We are also speaking to a lot of schools across India asking them to encourage traditional arts like drawing as a worthwhile exercise as animation and particularly gaming industry has great potential across the world," Karnik added. The gaming industry itself is worth $15 billion worldwide, he added.

"This apart, we also need to build partnerships with experienced players in the animation industry as the consumption of animation films is limited in India," he added.

Addressing what has become Nasscom's pet issue "� deterioration of infrastructure in Bangalore, Karnik said, "Infrastructure is an issue across India. Bangalore, specifically, needs to focus on developing infrastructure. We are now talking to various states in this regard."

On the IT front, Karnik said that Indian IT exports are expected to cross $16 billion in 2004-05, registering a 32 per cent growth this fiscal.

"The IT industry has great potential to grow in the next fiscal too provided the budget is favourable to the industry," he added.

Nasscom will be organising a summit on India Leadership Forum - Innovation and Globalisation from February 8 to 10, 2005. "The summit is expected to have about 1,200 participants with special sessions on subjects like the BPO industry," Karnik said.

"Top level executives from HSBC, Siemens and Boeing are expected to participate in the summit. For the first time, we will also be presenting global leadership awards at the summit," he added.