Bangalore: Indian animation industry has a potential to touch revenue of over $ 1.5 billion by 2005 from the present about $ one billion, but many obstacles including insufficient manpower remain for the growth of the "sunrise" sector, National Association of Software and Services Companies (NASSCOM) President Kiran Karnik said today (November 18).

Delivering his address at a seminar on "IT and Animation: Let's Talk" organised by the e-entertainment alliance, a joint initiative of Federation of Indian Chambers of Commerce and Industry (FICCI), NASSCOM and TiE in Bangalore, Karnik said the industry has a potential to grow two to two and half times the existing revenues in the next two years.

Pointing to the lack of trained manpower in the fledgling industry that has enormous potential, he said, the shortage was not only in creative people, but also in scripts and storywriters.

Citing a small domestic market despite having a booming film and TV industry, Karnik said Indian firms should exploit export opportunities and enter into co-producing arrangements, besides catering to the global audience.

"Like in the 1990's, when large number of IT and engine institutions particularly in the South came up to help grow the IT sector, there needs to be a spurt in high quality training institutions for the animation sector, not fly by night," he said.

Karnik said the global animation market was expected to reach $ 50 billion to $ 70 billion by 2005, and India has enormous advantage to tap this opportunity.

PTI