Govt must set up animation studio: Nasscom

The National Association of Software and Service Companies on Tuesday favoured the setting up of a state-of-the-art animation studio by a government agency to give fillip to the domestic animation and gaming industry, which is growing 20 per cent annually.

"One of our suggestions is that the government should set up an animation studio and let it out to the private players engaged in the business. This sector needs government's intervention as it is capital-intensive and investment on equipment is large," the Nasscom president Kiran Karnik told reporters on the sidelines of 'Animation India 2005' summit in Hyderabad.

Citing the Hong Kong model, where a state agency had set up an animation lab and was being operated successfully, he said a similar initiative could be replicated in India, which has tremendous potential to make a mark in the growing global animation and gaming industry.

The country's total revenues in the animation production services sector is estimated between $200 to 300 million during 2004.

"We are well placed to tap the potential because of the combination of a thriving entertainment industry and information technology skills. Very few countries in the world are endowed with this winning combination," Karnik said.