India's Growing Influence in Hollywood's VFX and Animation Sectors

India's burgeoning VFX and CGI sectors are increasingly pivotal in shaping the visual landscapes of Hollywood blockbusters. Companies like Prime Focus, Tata Elxsi, and the award-winning DNEG are at the forefront, delivering groundbreaking effects for films such as "Avengers: Endgame" and "Wonder Woman." This trend not only underscores the technical prowess within India's digital arts sphere but also highlights the country's strategic role in global cinema.

Pioneering Animation Excellence

Indian animation studios are transforming film narratives by blending intricate animated sequences with live-action footage, achieving a seamless cinematic experience. These entities are not only cost-effective but are recognized for their exceptional craftsmanship and ability to produce content that meets global standards. The growing reliance on Indian studios for animation illustrates a shift towards more collaborative international film productions.

Merging Cost Efficiency with High-Quality Production

India's appeal in the Hollywood VFX and animation market is enhanced by its cost-efficiency coupled with high-quality outputs. The proficiency in English and robust technical training make Indian artists highly sought after. This economic advantage, combined with top-tier skill sets, allows India to compete with established VFX education hubs like Canada and New Zealand, further integrating Indian talent into the fabric of international filmmaking.

Strategic Implications for Global Cinema

The integration of Indian VFX and animation experts into Hollywood is part of a broader trend of diversification and globalization in the film industry. With the Indian government's support for the VFX sector, there is potential for even greater participation in international projects, positioning India not just as a service provider but as a key player in cinematic innovation.

This enhanced role not only contributes to the aesthetic and technical aspects of filmmaking but also fosters a multicultural exchange, enriching the global narrative of cinema while providing substantial economic and creative opportunities within India.

As Marvel and DC continue to expand their cinematic universes, the role of Indian talent in these productions is only set to grow. With advancements in technology and an increasing pool of skilled professionals, India is poised to become an even more integral part of the global film industry.

Earlier this year, Finance Minister Nirmala Sitharaman announced the setting up of the animation, visual effects, gaming, and comics (AVGC) task force to give a push for the AVGC sector in the annual budget. “The AVGC sector offers immense potential to employ youth. An AVGC promotion task force with all stakeholders will be set up to recommend ways to realize this and build domestic capacity for serving our markets and the global demand,” she was quoted as saying by media reports.

Yadav of Redchillies VFX says that the Indian government has provided the needed push by forming the AVGC task force, aimed to create more opportunities for the VFX industry, both locally and globally while proposing ideas for a national AVGC policy to put India on the front foot. Yadav, who is also a member of the AVGC taskforce, says that the Indian VFX industry is heading towards a golden era.

According to a report by Boston Consulting Group (BCG) and Confederation of Indian Industry (CII) titled ‘Blockbuster Script for the New Decade: Way Forward for Indian Media and Entertainment Industry’ in December 2021, it is estimated that if India can capture a 20-25% share of the global VFX and animation market by 2025, it will be able to generate 75,000-120000 jobs by 2025. Biren Ghose, vice chairman of, the CII National Committee on Media and Entertainment, and country head, of Technicolor India, says, “Despite sporadic regulatory hiccups, in some states, this segment is growing at around 30% per annum which is the highest among the animation and visual effects (AVGC) sector.”

Globally, too, the VFX industry is set to grow at a good pace. According to a report by research firm Vantage Market Research, the global VFX Market was valued at $26.3 billion in 2021 and is all set to surpass $48.9 billion by 2028, exhibiting a CAGR of 10.9% during the forecast period 2022-2028. The Indian VFX industry, as per Namit Malhotra, is growing at a fast pace. During the first year of operation, their revenue was Rs 35 lakh and in March 2022, they closed with Rs 3,500 crore.

The growth, the report further suggests, can be attributed to rapid urbanization, technological advancement, and an increase in investment by developing countries. “Asia Pacific captured the lion's share in 2021 and is projected to retain its position over the forecast period. This can be attributed to the existence of a significant number of VFX industry companies and the high adoption rate owing to government measures that stimulate this industry in this region,” the report says.