News Hub for Indian Animation VFX Comics Gaming Merchandising Applications Ecosystem
The latest FICCI-EY report titled, “Shape the future: Indian media and entertainment is scripting a new story” has revealed that digital media in India has overtaken television to become the largest segment within the M&E (media & entertainment) sector, contributing 32 per cent to the overall revenues.
While the Indian M&E sector is expected to grow by 7.2 per cent in 2025, reaching Rs 2.7 trillion (US$31.6 billion), the growth trajectory for the animation sector within M&E is not the same.
The animation and VFX segment saw the highest decline within the M&E segments that include digital media, live events, OOh (out of home) media, radio, music, TV, films and online gaming. Animation and VFX fell 9.4 per cent due to global supply chain issues, struggling international studios and the Hollywood writers’ strike. Reduced broadcast ad revenues also impacted the production of animated content in India.
Below were the key trends observed in the animation industry in 2024:
The global decline in commissioning TV and OTT animation shows, coupled with cost-cutting measures and shifting priorities, disrupted the animation outsourcing pipeline to India in 2024. The industry is undergoing a reset, re-evaluating its strategies and adjusting to the changing demand. Contributing factors include:
Indian animation moved beyond products created for children:
Here’s how animated studios responded to the industry reset: