India's prolific film industry is projected to reach revenues of $3.3 billion by 2010, reports REUTERS. As it rides new technologies and a booming economy, the Indian industry will see an expansion of 18% per year, stated an industry lobby.
India produces nearly 1,000 films a year, second only to the U.S. However, the industry remains fragmented and largely opaque, with formal funding still limited and profits rare.
However, Bollywoods family-owned entertainment firms have moved toward a more corporate structure since banks were first permitted to fund films in 2001.
The Indian film industry's revenues currently stand at 68 billion rupees ($1.5 billion).
To grow the industry, the Federation of Indian Chambers of Commerce and Industry said India must standardize taxes, promote multiplexes and boost the animation.
"Though the (animation) industry is growing in leaps and bounds, the full potential is yet to be tapped," it said. "With the cutting edge technological advancements and increasing penetration of PCs, mobiles and Internet, the segments like animation and gaming would witness unprecedented growth."
With annual revenues of $310 million, the animation industry has grown so far on the back of outsourcing of animated CG for television, theatrical features and the Internet.
The trend toward more local based productions is expected to help India's animation and gaming market quadruple to $1.3 billion by 2009 and employ about 30,000 animators, says National Assoc. of Software and Service Companies.