Animation has been identified as one of the fastest growing industries in India . Till now, Indian animation market was static. As such Canada is a hub for animation industry, but recently to become cost effective, this activity has been outsourced to other countries including India . The demand for animation production services from international animation studios spurred in large volume due to lower cost offered by India for 2D and 3D animation production techniques. In spite of a good scope, Gujarat is not able to boast of a good development in this area, though the State hosts an institute - National Institute of Design (NID) running this course since quite some time. Apart from this, the State is producing world-class artists through fine art institute at CN Vidyalaya and fine art center at MS University, Vadodara.

Manufacturing is the core strength of Gujarat . Till now service sector enterprises set up in Gujarat included the activities like Call Centers, medical transcription, hospitals, entertainment complexes, shopping malls etc. Though important inputs required are available in Gujarat , awareness of animation industry appears to be very little. To train the manpower for the industry, not many training centers are available. . Companies in the cities like Hyderabad , Bangalore and Chennai are playing host to some of the country's leading animation houses. Companies such as Crest Communications, Films Division, Maya Entertainment, Silvertoon Studio, 2NZ Studio, Cine Magin, Climb Films, UTV Toons, Zee Institute of Creative Arts (ZICA), Digital Studio, Pentamedia Graphics, Prasad Studios, Acropetal, Jadoo Works, Color Chips, Heart Animation, Ocean Park, Padmalaya Telefilms and Toonz Animation India Ltd., Magic Shop, Moving Pictures, Digital Cartoon, Unilazer, Western Outdoor, Universal Studio, Sri Adhikari Brothers etc. are just a few outfits engaged in the world of animation and special effects.

Animation is regarded as a part of the creative or content industry, as artistic or creative effort is essential to the process of developing animation. The segment according to UK Creative Industries Task Force, has the potential for job creation through the generation and exploitation of intellectual property. The US industry, the largest user of animation products and services, describes entertainment as feature films, TV programs, music, broadcasting, cable TV, games, sports, performing arts, theme parks and toys. According to NASSCOM animation report, the total global animation production figure ranges between US $ 16 and 31.5 billion for the year 2000. For the year 2001, it stands anywhere between US $ 25 billion and US $ 38 billion. The analysts however estimates that the global animation production rose to about US $ 45 billion in 2002. The table shown below gives a picture of demand vs actual production in this field as also the contribution of India with the estimates of NASSCOM for the global entertainment market forecast for 2005.

Some of the other estimates of the NASSCOM report on animation reveal the following:

• The global entertainment market will generate a demand for animation production services of the order of US $ 37 billion by 2003 (forecasts by Pixel Inc.)
• In the non-entertainment segment, the demand for animation production services will touch US $ 14.7 billion by 2005 (forecasts by industry source)
• The global film/TV program production market will create a US $ 17.5 billion revenue opportunity for animation production houses (forecasts by Pixel Inc.)
• On the gaming side, according to an ICT industry leader, the demand for animation production services was of the order of US $ 5 billion in 2000.

India 's animation studios are catering to the requirements of various end user segments such as feature films, TV programmes, advertisements/commercials and computer games. Animation solutions are also finding a place in niches such as film titling, special effects, Web entertainment programmes; TV broadcast graphics, 3D modeling and background development. In each of these areas, the extent or scope of services for an animation production company includes offering services in animation production, co-production and content creation.

Segments such as online education, CAD/CAE and industry specific applications such as architecture, medical, legal/insurance, etc. are also potential platforms for animation, though Indian studios are not focused on these markets. Skill sets in 2D and 3D animation are leading to opportunities in segments such as TV programmes and feature films.

A recent study on animation industry by NASSCOM shows that the global animation production market is set for major growth. The study is based on multiple statistical projections on the market, from segments such as industry sources, Pixel Inc. and Arthur Andersen. They visualize that the total production by Indian producers would touch US $ 1.5 billion by 2005. India has some inherent strengths, which could give further fillip to this industry. Therefore, Indian market should strive to cater to the following requirements of foreign buyers.

Advantage India

• A vast base of English speaking manpower : Animation, which requires a familiarity with the English language, benefits when the work is outsourced to India . Besides, a number of initiatives are underway in the country targeted at creating skilled manpower for the animation market.
• Presence of animation studios : A number of Indian cities already boast of hi-tech animation studios (equipped with state-of-the-art hardware and software) which are successfully completing projects from overseas companies. There are at least 12 animation studios in India that offer global class facilities in terms of the relevant hardware, software and communications infrastructure, experience, skill sets and consumer profile.
• Low cost of animation services : India 's edge in terms of pricing is stated to be unmatched. Compared to countries like US and Canada or even Korea and the Philippines , the Indian animation costs are the lowest. NASSCOM's study shows that while the rates for production of half an hour TV animation programme would be around US $ 250,000-400,000 in the US and Canada , it is around US $ 60,000 in India .
• India 's large entertainment sector : Owing to a prolific entertainment segment, India has a ready supply of content developers.
• Heritage of traditional literature : Indian content developers also have exposure and access to rich heritage of traditional literature. This would offer the potential for content-based partnerships.
• Studios that are well equipped : The larger film production studios in India are equipped with state-of-the-art computer hardware and software platforms.

The main end use segments of animation, which constitute opportunity areas for animation producers in India are feature film production, TV programmes, Advertising/commercials and Games.

The Indian domestic market too is throwing up revenue generation prospects for ICT solution providers, specializing in this market. The requirement by the burgeoning Indian television segment for animation and special effects related work is also giving a fillip to this segment. Recognizing this potential, a number of Indian software players are turning their attention to animation. Animation studios now dot the country and the industry is also witnessing the arrival of training houses that are dedicated to building skilled manpower for this market.

By all account, the animation production industry in India has the potential to grow into a major export engine for the country. Indian design studios are gradually establishing their credentials in overseas geographies, gaining valuable experience and building their skill set in this high potential global market. With some incentives provided to this segment, India can not only catch up with competitors such as the Philippines , Korea and Taiwan , it can easily exceed their potential.

To make Indian animation industry world-class, there is a need to develop and strengthen the supply base of animation production studios by importing hardware and software equipment.

NASSCOM recommended making imports of hardware and software required for studios free of customs duty. The study suggested collective bargaining with overseas IT equipment vendors to get the best possible prices.

Moreover, NASSCOM wanted the government to set up animation parks, on the lines of software technology parks, replete with shared infrastructure facilities to reduce capital investment per player.

There is also a need to establish studio space for short-term hire to help small sized companies and experienced animators who may have budgetary constraints. The Government also needs to provide Indian IT companies with incentives to undertake product development effort in animation software.

Normally, it is expected that animator should have a creative and artistic ability, a good sense of humour and observant eye. Following institutions offer courses of animation:

• National Institute of Design , Ahmedabad ( www.nid.edu )
• ZICA Studios, Mumbai
• Industrial Design Centre, IIT Bombay
• IIT-Guwahati, B.Des (Visual Communication/Industrial)
• Arena Animation Academy , Mumbai
• Pentamedia Graphics Ltd., Chennai ( www.penta-media.com )
• C-DAC's National Multimedia Resource Centre, Pune (Diploma in Advanced Computer Arts)
• Maya Academy of Advanced Cinematics (MAAC), A Division. of Maya Entertainment Ltd.

Andersen Consulting states that Indian animation industry currently pegged at US $ 550 million is slated to clock a growth rate of 30% annually in the next 3 years and is expected to reach US $ 15 billion by 2008 and India would receive more than US $ 2 billion worth of animation business. Atkerney rates India on the top for offshoring business destination and assessment from global studies such as World Disney Pictures & Cartoon Network would be possible to get. Apart from local applications by Indian advertising industry, India can create a cartoon network and has a lot of scope in high end game technology.

Support for development could be possible from the expert like Ishu Patel, an internationally acclaimed film director, animator and educator. Ishu Patel, born in Gujarat , received his Bachelor of Fine Arts from the MS University of Baroda and he did his graduation studies in Visual Communication from National Institute of Design, Ahmedabad. Before joining the faculty of University of Southern California , Ishu Patel worked for twenty five years as a full time Animation Director/Producer at the world-renowned Animation Studio of the National Film Board of Canada at Montreal .

In a nutshell, Gujarat being close to Mumbai and having required infrastructure can plunge into the business which offers unlimited scope for growth.

Animation being a multi-hand and multi-fold activity; can be started with a very limited investment. There is a huge potential that Gujarat could offer on account of inherent advantage of good training infrastructure already in place. Apart from this, Gujarat also imparts education in the fields of IT and Computer Applications through a large number of Engineering Colleges. Thus, manpower with working knowledge is available. Only thing, manpower needs appropriate training of animation and graphics. Gujarat is also having basic facilities to produce films at various places like Halol, Gandhinagar and Umargam which can be upgraded to international level so that businesses from USA , Australia and Canada can be offshored. It may be mentioned that this industry could be set up with one of the lowest investment with a limited space in the residential premises. The only infrastructure required are good connectivity and networking. As entrepreneurs of Gujarat are well known for their entrepreneurial acumen, they will definitely take up this opportunity. This would not only generate revenue to the economy of Gujarat , but also diversify the base of service sector.

Looking to the growth projected by NASSCOM, Arthur Andersen, Gujarat can be one of the destinations for developing this industry and able to fetch major pie of the business. Every year Gujarat is producing at least more than 2000 students from IT, Fine Arts and IT related subjects can be motivated to become entrepreneur of this kind instead of searching for a job, as the industry requires low capital investment. The positive side of this industry is, it is employment oriented and has a potential to generate more employment like diamond cutting & polishing activities.