Featured MEdia
Supply Chains

Industry Overview

The Animation, VFX & post-production segment in India contracted by ~9% to ₹103 billion (~$1.3 billion) in FY 2024 due to global supply shifts and cost pressures. The VFX sub-segment declined ~14%.¹

That said, the broader AVGC (Animation, Visual Effects, Gaming & Comics) ecosystem continues to underpin India’s media supply chain—servicing Indian originals and global outsourcing mandates.

Market Size & Growth Forecast

Current estimates place the Indian animation market above $1.5 billion and rising fast. Projections by 2032 set the sector at ~₹25,000 cr (~$25 billion), translating to a ~38% CAGR between FY 2024 and FY 2032.^1,2

Globally, animation content production is also booming—from ~$373 billion in 2024 to ~$393 billion in 2025 (CAGR ~7.2%), and expected to reach ~$631 billion by 2034.^4,5

Key Studios & Players

• Toonz Media Group

Established in 1999, Toonz is a global animation company serving kids & family content, with presence across Asia, Europe and the US. It also operates an academy to build AVGC talent.⁶

• Green Gold Animation

Hyderabad‑based studio behind Chhota Bheem, Mighty Raju and spin‑offs across Amazon, Netflix and Pogo. Exponentially into licensing, merchandising and digital IP.²

• Assemblage Entertainment

Founded 2013 in Mumbai and now part of Cinesite, this feature animation studio handles global projects—e.g. Blinky Bill, Rocketry VFX and formal outsourcing workflows with Hollywood clients.⁸

• DNEG (UK‑Indian hybrid)

Globally Oscar‑winning VFX & animation heavyweight with Indian centers in Mumbai, Hyderabad, Chennai, Bangalore. Cutting‑edge credential in stereo conversion and feature animation.⁹

• Other Notables: Charuvi Design Labs & Accel Animation

Charuvi Design Labs (Gurgaon) bridges art and tech with immersive AR installations and pre‑visualization projects. Accel Animation (Chennai/Kerala) supports gaming, VFX and motion capture services. ^7,4

Also worth mentioning: Xentrix Studios, DQ Entertainment, Maya Digital, Vasundhara Game Studios among outsourcing leaders.¹

Emerging Technologies & AI Use Cases

AI acceleration tools—procedural rigs, automated lip‑sync, style transfer—are reshaping workflows. Studios are embedding AR/VR pipelines for immersive storytelling, especially in heritage and experiential projects.

Game animation demand is rising fast, particularly as Indian studios partner with global game publishers, offering art pipeline and 3D render services.

Challenges & Risks

• Talent Shortage: Deep skill gaps still require graduates from NID, IIT Media labs. Many depend on personal networks to break into top tiers (e.g., DNEG or PaperBoat).³
• Infrastructure Gaps: Underdeveloped regional centers outside Mumbai, Hyderabad mean high costs in building pipelines.
• Demand Volatility: Global film/VFX slumps directly impact outsourcing orders, as seen in 2024 contraction.

Institutional Developments & Talent Pipeline

The AVGC ecosystem will generate nearly 2 million jobs over the next decade — led by domestic IP projects, educational content exports, and localized OTT demand.¹

Government-backed initiatives—like skill development programs under AVGC clusters and IICT-led incubators—aim to bridge the talent gap and create regional hubs.

Future Outlook & Opportunities

India’s animation sector points to a compelling runway:

• Domestic IP creation: Channels like Sony YAY and digital platforms commissioning original crime‑animation (e.g. CID Squad).
• OTT partnerships: Co-productions between Indian studios and streaming services on 3D/children’s IP.
• Education exports: AR/VR animated applications for remote learning and gamified content.

With better oversight across content pipelines, media CXOs can avoid chaos in email threads and missed opportunities. That’s where tools like Project Tracker deliver Netflix‑level clarity on investment intent and real‑time pipeline intelligence.