India's animation industry is expected to hit $1 billion by 2012 and the gaming industry would touch $830 million then, aided by increased
and a growing domestic market, a report released on Wednesday said.
The Indian animation market, estimated at $494 million in 2008, is seen growing at a compounded annual growth rate of 22 per cent till 2012, a report by National Association of Software and Service Companies (NASSCOM) and Ernst & Young said.
"The industry will witness a dip in growth rates for two years before becoming a billion dollar industry by 2012," Farokh Balsara, Partner & National Leader-Media & Entertainment Practice with Ernst & Young, said at a media briefing, referring to the animation industry.
The gaming industry was estimated at $167 million in 2008 and is seen growing at a compounded rate of 49 per cent yearly to hit $830 million by 2012, the report added.
The expectation that the entertainment industry would be relatively isolated from the economic downturn has been disproved as the spending patterns were hit by the financial crunch hurting the growth rates, Som Mittal, Nasscom's president, said.
The economic crisis has hurt the earnings of Indian IT companies, with NASSCOM forecasting a 4 to 7 per cent rise in India's software services and exports for the year to March 2010, sharply slower than the past years' robust growth.
©Reuters
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