Indian gaming, toons set to boom

Report sees 27% annual growth to $1.2 bil by 2012

NEW DELHI -- The Indian animation and gaming industry is projected to surge by a compounded annual growth rate of 27% to reach $1.2 billion by 2012, up from $460 million this year, according to a new report by the National Association of Software and Services Companies.

The report, "Indian Animation and Gaming 2008," was released Thursday at the start of the annual two-day gaming summit hosted by NASSCOM in the southern city of Hyderabad.

Written with help from consulting firm Ernst & Young, the report said that India's gaming industry alone will grow by 50% CAGR to $1.1 billion by 2012, up from $212 million this year.

Domestic animation content also is on the rise, with 85 features in development, of which 15 are slated for release over the next two years, the report said.

"The world is looking toward India as a gaming and animation hub and we believe that India is well placed to leverage this opportunity," NASSCOM president Som Mittal said.

The report cautions that a lack of variety in content and an overdependence on myth-based animation could restrict overseas appeal. It also warned that underdeveloped training and insufficient bandwidth could present a challenge.