Virtually, the next big thing: Animation, VFX, Extended Reality creating a new growth path

If there is one thing that catches the fancy of every individual, it’s the fantasy world created in the media and entertainment industry with the help of visual graphics. Gone are the days when stunt-persons risked their lives to perform daring tasks in movies that were considered unbelievable or superhuman. Every superhuman feat witnessed on the silver screen now owes it to animation, visual effects and extended reality brought to life with the help of the green screen, technology and precise video editing.

GREEN SCREEN ON SILVER

According to a report by NITI Aayog, it is estimated that the Indian media and entertainment industry is expected to grow at 8.8% CAGR to reach USD 53.75 billion in 2026. In 2019, India’s Animation, VFX, Gaming, Comics and Extended Reality (AVGC-XR) sector had an overall market size of USD 2.3 billion, which was about 0.7% of the global market size. The industry is expected to grow 2.2 times over the next four years and constitute about 1.5% of the global AVGC market.

The increasing number of animated series and features being produced in India have attracted global audiences, with many works getting distributed globally. The demand for animation has expanded with the increase in children’s broadcasting viewership, availability of low-cost internet access, and growing popularity of OTT platforms.

The Indian VFX industry has been gradually making progress with the adaptation of world-class techniques and innovative technology. Content creators are experimenting storytelling with high-quality VFX advancements. VFX and animation can be the next IT-BPM boom with the potential of playing a fundamental role in India becoming a USD 100 billion media and entertainment industry by 2030.

Recently, the Indian Ministry of Information and Broadcasting organised the First National Workshop and Consultation on Draft AVGC Policies at New Delhi for industry, academia and the government. Several Central and State Government bodies, along with industry associations and leaders of the AVGC sector participated in the workshop to fine-tune the modalities of this growing sector.

TOGGLING WITH IDEAS

Build-up of the metaverse ecosystem is expected to boost the adoption of real time 3D technology and there’s a huge potential in its application beyond gaming in areas such as education, e-commerce, entertainment and industry.

The global animation and visual effects market size was estimated at USD 168 billion in 2021 and is projected to grow to USD 290 billion by 2024 at a CAGR of 10.94% between 2020 and 2026. Television and OTT largely dominate the use of animation and VFX, followed by films. Between 2020 and 2024, gaming is expected to be the fastest growing segment of animation and VFX services with a CAGR of 12%.

The AVGC-XR sector can make Indian culture accessible to the world, connect the Indian diaspora to India, generate direct and indirect employment, and benefit tourism and other allied industries. In recent times, many global players have expressed interest in the Indian talent pool to avail offshore delivery of services as India is now seen as the primary destination for high-end, skill-based activities in the AVGC-XR sector.

This steadily growing industry has emerged as a sunrise sector, both at the national level as well as globally. And with the right set of interventions, it has the potential to become the backbone of the media and entertainment industry in the country.

Power Play: Can nuclear energy help solve electricity generation woes?

Everything needs electricity to run these days. Gone are the days when lighting needs were met through kerosene or petromax, heating needs were fulfilled through wood or coal, and cooking was done on either coal or wood-fired stoves or with the help of biogas.

Electrical appliances now flood the market and air-conditioners, desert coolers, fans, oil-filled radiators and blowers, microwaves and OTGs, induction cooktops, mixers and grinders, etc are a common sight in every household. Even industries are heavily reliant on electricity to aid in production of goods. Farming is also aided by electricity, especially when it comes to winnowing, crushing, grinding grains and storing produce in cold storage for long periods.

With this rapid increase in the usage of electricity, power outages have become a common scenario. The policy of the Indian and State governments to attempt to provide round-the-clock electricity in urban areas and at least 16 hours of power in the suburbs and rural areas has also put pressure on generating agencies.

Data from the Central Electricity Authority (CEA) shows that in 2009-10, the total requirement of power was 8,30,594 BU, but there was a 10.1% deficit in supply. The scenario in 2022-23 was much better as the total demand of 13,82,920 was nearly met with a mere 0.5% deficit in supply.

India’s electricity generation, including renewable resources, has grown from 805.4 billion units (BU) in 2009-10 to a whopping 1,491.9 BU in 2022-23 (up to February 2023).

India’s total installed generation capacity from fossil fuels (coal, lignite, gas, diesel) is 2,36,469 megawatt (57.4 %), while from hydro, wind, solar and other renewable energy is 168,963 MW (41%). Nuclear power accounts for a mere 6,780 MW or 1.6% of the total generation capacity, as on February 28, 2023.

ATOMS TO ENERGY

Given the prevailing scenario, it becomes pertinent for the government to stop replying heavily on plants that run on fossil fuels due to climate crisis concerns and for availing carbon credits. Of course, the next big thing to meet the ever-rising consumption of electricity is increasing the capacity of nuclear power plants.

The Indian Government has stated that nearly 9% share of electricity is likely to be contributed from nuclear sources by the year 2047, when the country celebrates 100 years of Independence. This would also help in getting closer with the commitment of achieving net zero target by 2070.

The other targets laid down by the Department of Atomic Energy are achieving 20 gigawatt capacity of nuclear power generation by 2030, which would be a major milestone placing India as the third largest producer of atomic energy in the world after the USA and France.

For the first time since 1947, India approved 10 reactors in fleet mode in a single order and allowed nuclear installations to be developed under joint ventures with public sector undertakings so that nuclear energy can be used for peaceful purposes. Now, India is the sixth largest in the world in the number of functional reactors and the second largest in the total number of reactors, including those under construction.

Enterprising Solutions: Small entrepreneurs cash in scheme for capital expenditure

It’s said that doing one’s job when in the employment of another becomes easy if you have an entrepreneurial mindset. And if you have this mindset, the next step is, of course, becoming an employer from being an employee. But the biggest catch is — generation of capital.

A HELPING HAND

While seed funding for startups from venture capitalists and other sources has been growing by leaps and bounds, those belonging to non-corporate, non-farm, small and micro entrepreneurship face a huge hurdle in generating funds.

It’s not easy getting investors to fund low-income generating models of business or those that require a low capital and have even lower profits. Moreover, banks and non-banking financial institutions (NBFC) often insist on providing collateral security to fund the small enterprises. As a result, small entrepreneurs often fall into the clutches of local moneylenders who offer loans at exorbitant interest rates, which can be as high as 5% per month.

In 2015, the Indian Government launched a scheme called Pradhan Mantri MUDRA Yojana (PMMY) on April 8 to facilitate easy collateral-free micro credit of up to Rs 10 lakh to non-corporate, non-farm small and micro entrepreneurs for income generating activities. The motive was to bring the unserved and under-served sections of the society within the framework of institutional credit. The loans are provided by Member Lending Institutions (MLIs) — banks, NBFCs, Micro Finance Institutions and other financial intermediaries.

On the eighth anniversary of the scheme, the Union Finance Ministry claimed that till March 24, 2023, about Rs 23.2 lakh crore were sanctioned in 40.82 crore loan accounts. Interestingly, about 68% of the accounts belong to women entrepreneurs and 51% to entrepreneurs of SC/ST and OBC categories. Approximately 21% of the total loans have been sanctioned to new entrepreneurs.

The loans are divided into three categories based on the need for finance and stage in maturity of the business. While “Shishu” loans are for up to Rs 50,000, “Kishore” loans are those above Rs 50,000 up to Rs 5 lakh, and “Tarun” loans are those above Rs 5 lakh up to Rs 10 lakh.

To reduce the financial stress of borrowers at the “bottom of the pyramid”, the Indian Government on May 14, 2020 allowed interest subvention of 2% on prompt repayment of “Shishu” loans under the Atma Nirbhar Bharat Abhiyan. While the scheme was originally operational till August 31, 2021, it was extended under PMMY by 12 months to all eligible borrowers. Small Industries Development Bank of India disbursed Rs 636.89 crore to MLIs for crediting the subvention amount into the accounts of borrowers.

According to the government, the growth of Micro, Small and Medium Enterprises (MSME) has contributed massively to the “Make in India” programme, which has led to increased indigenous production both for domestic markets as well as for exports.

The “Make in India” mission was touted as a gamechanger to generate large-scale employment opportunities at the grassroots level and, in the process, boost the Indian economy. It was to also result in innovation and increase in per capita income. Data for this is yet to be released by the government to check the scheme’s effectiveness and success.

Smooth Flow: Water woes in rural areas to be washed away through Central Mission

Despite several problems that still need ironing out, cities have been fortunate enough to get water supply through taps in their homes. But rural areas are still dependent on water from handpumps, wells, ponds, and other natural depressions where water gets collected during the rainy season.

MASSIVE TRANSFORMATION

Going by the figures provided by the Indian Government, in 2019, out of 19.32 crore families in rural areas, only 3.23 crore (about 17%) had tap water connections in their homes. As a result, the only source of “running drinking water” for about 16 crore families was by fetching water on foot from an outside resource. In water-stressed regions, especially during summers, people face difficulty in procuring adequate potable water, which affects their daily lives adversely, and water tankers have to be put in operation by the government or local administration.

On the 73^rd Independence Day, on August 15, 2019, the problem of water crisis was addressed by Prime Minister Narendra Modi in his speech from the ramparts of Red Fort where he announced the Jal Jeevan Mission: Har Ghar Jal with an aim to ensure tap water supply to every rural home. Under the programme, every rural household is expected to have a functional tap water connection by 2024.

The results seem promising as out of the total 19,43,58,243 rural households across India, 11,64,82,887 (59.93%) have tap connections (as on March 23, 2023). If one travels along the countryside, large concrete water tanks, which earlier could only be found dotting the skyline of urban or suburban areas, can be seen adorning the premises of Panchayat Bhawans. Piped water is subsequently provided from these tanks to village households.

Providing potable drinking water in the taps of households in the hilly terrains of the Northeastern states is a humongous task. On January 4, 2022, while laying down the foundation stone of various drinking water projects in Manipur, the PM stated that only 6% people of Manipur had piped water supply in their homes till a few years ago. But that number has reached over 60% under the Jal Jeevan Mission. In March 2023, Arunachal Pradesh crossed 75% coverage under the scheme, providing drinking water to 1.73 lakh rural households.

Jal Jeevan Mission has a budget outlay of Rs 3.6 lakh crore for a period of five years. The ambitious project, once complete, is expected to give a boost to manufacturing and create job opportunities, which, in turn, will lift the rural economy.

Observing the project from a social angle, assured piped water supply in rural homes will reduce the drudgery of women as they will no longer have to waste a considerable part of the day fetching water from a distance. This will help them complete their household chores much earlier and the time saved can be utilised in doing something constructive, which will provide them earning potential, thus, providing them empowerment and dignity.

The core principle of the Jal Jeevan Mission is a “decentralised, demand-driven community managed water supply programme”. The Gram Panchayat, or a committee formed by it to play the role of a public utility, will have the central role in planning, implementation, management, operation and maintenance of the village water supply system. When a community gets together, it leads to the development of a responsible and responsive leadership at the village level.