India's animation and VFX segment grew 2 per cent to ₹105 billion in 2025, after falling to ₹103 billion in 2024

India's animation and VFX segment was worth ₹105 billion in 2025, gross of taxes, against ₹103 billion in 2024 and ₹114 billion in 2023 ^[3]. The segment grew just 2 per cent in 2025 ^[2]. Converted, ₹105 billion is ₹10,500 crore, the Desk's arithmetic on the report's figure ^[3].

Domestic demand increased as more mid-budget films used VFX, and post-production services expanded into new niches ^[4]. AnimationXpress, reporting on 24 March from the same report, put mid-budget films' VFX spend at 10 to 15 per cent of their budgets ^[7].

The Hollywood writers' strike impacted global supply chains, and international studios struggling with profitability in 2025 focused on fewer films and series ^[2]. The report also records that content as well as animation and VFX came under cost pressure from buyer consolidation ^[8].

The six per cent decline belongs to the animation sub-segment rather than the segment: AnimationXpress reported on 24 March that the Indian animation sector contracted by six per cent in 2025, with revenue of ₹27 billion against an estimated ₹29 billion in 2024 ^[6]. On those two rounded figures the fall works out closer to seven per cent, which is the Desk's arithmetic rather than a percentage either source prints ^[6].

AnimationXpress reported weak commissioning in the United States, with orders down 11 per cent year on year ^[6]. It reported that Netflix and Apple TV+ cut annual animated series orders from 15 in 2022 to five in 2025 ^[6]. On the domestic side it reported fewer linear television homes, less kids-targeted FMCG advertising and a 7 per cent reduction in OTT hours commissioned ^[6].

The report estimates the segment at ₹113 billion for 2026 and ₹138 billion for 2028, a compound annual growth rate of 10 per cent across 2025 to 2028 ^[3]. It projects that animation and VFX revenues will increase as global content pipelines stabilise ^[8].

For the sector around it, the Ministry of Information and Broadcasting put media and entertainment at ₹2.78 trillion in 2025, up 9 per cent year on year, and named animation and VFX among the drivers of a forecast ₹3.3 trillion by 2028 ^[5].

Two limits on reading any of this. The segment table carries animation and VFX as a single row, so the ₹105 billion does not separate animation from VFX or from post-production ^[3]. And the release carrying these figures is dated 24 March 2026, with the data for calendar 2025 ^[2].