Indian VFX Industry: Ground To Be Gained
Although progress has been made by the VFX industry in India, the export statistics when pitted against the rest of the world show that there is much ground to be gained. The global spend on film and TV production and licensing of new content by streamers, studios and independents in 2020 reached $220.2 billion (INR 16,36,086 Cr). 10% of this acquisition budget as per the thumb rule is allocated to post-production ($22 billion i.e. INR 1,63,608 Cr). India’s VFX and post-production industry in the year 2020 was a mere INR 2,850 Cr ($383.58 million) and had contracted by 62% and 58% respectively compared to the year 2019. The total global value of the AVGC business is $260 billion (INR 19,31,800 Cr), however, India’s share is a mere 1% of this figure (INR 19,318 Cr). This is an area of opportunity for India and is the low hanging fruit.
Music is also an essential part of the post-production process for a film. Dubbing stages are an integral part of the finished product of filmmaking. A lot of these processes can be completed in India for foreign film crews filming in India, however, it is crucial that these film crews are made to feel comfortable by allowing them to bring their entire team and equipment to the country rather than having to deal with an unknown crew and different equipment. We highly recommend that the government introduce some reforms to allow for a smooth sail for foreign film crews to come to the country in the form of tax breaks and/or subsidising import duties.
Animation Opportunities
In the year 2020, when the entire world was facing a pandemic, the animation sector in India saw growth. This can also be attributed to the fact that a lot of film and TV work started to turn to animation since outdoor film shoots were called off. In India, the animation segment grew by around 10% in 2020 from INR 2,230 Cr in 2019 to INR 2,450 Cr in 2020. The growth of OTT channels has increased attention on animated intellectual property content and larger investments in VFX by studios has created opportunities in both the domestic and international markets. The AVGC Industry employs around 1.5 million people across both formal and informal sectors which are contributing immensely to making India a global M&E services hub. According to a report by BCG-CII, it is estimated that if India can capture a 20-25% share of the global VFX and Animation by 2025, it will be able to generate 75000-120000 jobs by 2025. However, this is with the hope that the vision that we have for our country and the AVGC industry will continue to be built on. Animation growth was not solely stimulated by entertainment but EduTech start-ups such as Byjus and StepApp made use of animated content to make their platform more engaging. Animation studios such as Toonz Media Group which is based in Kerala, India, launched their own EduTech venture titled Ri8Brain.
As per industry sources, on average, the rough budget for animation is around $50 million per film. The global animation market is said to be $354.7 billion (INR 26,42,515 Cr) in 2020. In India, the animation sector stood at INR 2450 Cr ($330 million) in 2020. In India: 70-75% of revenues for Animation came from international clients. The reason there was less domestic work was due to the low ticket size of domestic work. Smaller studios in India struggled and eventually even shut down. Comparing animation to the Post-Production or the VFX sector, the animation sector is the only sector to have shown growth (10%). In 2020, nearly 8 out of 10 animated kids shows on TV were homegrown Indian shows.
Now due to the advent of OTT, it is time India takes advantage of its growing animation sector and creates content that is born and bred in India to showcase to the rest of the world. Video OTT puts all firms and studios from all parts of the world on a level playing field and with the talent that is prevalent in the country, this avenue needs to be exploited to its maximum.
Recommendations
It is our plea that the recommendations put forth for further betterment of the post-production and VFX Industry are taken into account. Only with continued support from the government, will India be able to establish itself as the primary hub at a global level for Post-Production and VFX services.
-The Exim Bank of India should produce a white paper on export in the VFX sector.
-The new National Education Policy 2020 is designed to encourage out-of-the-box thinking among the youth and is a key driver to the success of AVGC and the Media and Entertainment sector. India needs at least 30 more National Institutes of Design (NID) to boost its M&E exports. As a start, the Ministry of Information and Broadcasting has collaborated with IIT-B (IIT Bombay) to form a centre of excellence in gaming for offering courses related to VFX, Gaming and Animation. India has successfully delivered major VFX projects from top global studios, including Oscar-winning VFX films recently.
-The Audiovisual Champion Sector Scheme incentives are available to people from all over the world to shoot and do post-production work in India. This needs to be promoted further on a global scale.
-The government needs to relook at the GST policy for VFX exports also imported equipment needed for high-end VFX works should get breaks in import duties. The current custom duty for film equipment in India is around 7.5-10%. This would also allow foreign studios a comfortable environment when working in India as they will be familiar with the equipment they use.
-Create a post-production and VFX hub within one city in India rather than keeping it scattered all over the country.
-Formation of forums at both state and city levels. These forums should be in conjunction with the film commission of the state or city. This will allow for rich discussion and policy debates at a more grassroots level.
-At the National Film Awards: Institute an award for ‘Best VFX EXPORTS from India”.
-Strengthen enforcement under copyright laws in India to assure that appropriate protection is provided to the services outsourcing post-production
-DPIIT sponsored pavilions at NAB Vegas, IBC Amsterdam, CAPSAT Dubai.
Conclusion: Play To Our Natural Strengths
On June 26th 2020, TCA Kalyani, Joint Secretary (Films), Information & Broadcasting Ministry, and Managing Director, National Film Development Corporation of India (NFDC) said,"We will be announcing the incentives for filming in India soon and these incentives will not only be for films but for web series and TV productions as well."[8] India will be able to establish itself as a global filmmaking hub as well as a global filmmaking superpower with continued government support like this.
The temptation will be to try and take a bite of the global $22 billion post-production market, that’s the ultimate trophy. But given our natural strengths in VFX, 50% of the VFX market by 2024 will take VFX exports from India to $10 billion to $12 billion.
Another aspect that needs focus is India’s own filmmaking culture. Indian storytelling ability is second to none, and this ability needs to be exploited. There have been several Indian movies that have been nominated for the Academy Awards (Oscars) and some of these films have recognised Indian culture as well. As is seen through the examples listed above, foreign film studios are not completely oblivious to the services India can offer at a post-production level but promoting India as a hub for filmmaking, will take the country’s exports and overall film prowess to the next level. It is about time India becomes a global filmmaking superpower which represents the talent prevalent in the country.
