Nasscom seeks SEZ for animation & gaming industry

The National Association of Software and Service Companies (Nasscom) has called for a special economic zone (SEZ) for the animation and gaming industry in India. It has also suggested that the government recognise Software Technology Parks of India (STPI) as an SEZ.

According to Kiran Karnik, president of Nasscom, a cluster approach can help in promoting the industry in the global market.

"At present, the animation and gaming industry is fragmented. However, if an SEZ is set up to cater to these industries, it can bring in huge benefits as in the case of the IT industry. It can boost investment in the industry as well," he added. Karnik was speaking to the media on the sidelines of Animation India 2006.

"We have also suggested that STPI be given the same status as SEZ so that companies do not move out from STPI to SEZ for availing the benefits in the latter," Karnik said.

Some of his other suggestions include incentives in terms of land at concessional rate and providing funds for start-ups besides pushing the demand side on Indian television by reserving some part of production for animation.

With regard to the piracy issue, Nasscom has suggested setting up of special courts for intellectual property rights in the country.

"While there are laws, there is no certainty of punishment. The conviction rate is painfully slow," he added.

India's share in the global animation industry is less than one per cent today. The global market size for the animation industry, estimated at $55 billion in 2005, is expected to grow to $75 billion by 2009. The worldwide gaming market, estimated at $19 billion in 2005, is expected to increase to $36 billion by 2009.