Animation started as a promising area in 2ooo, but has faltered along the way. The total revenue generated by animation industry is Rs. 1200 crore which is shared by at least 50 active companies. The US studioes were the first to source from here due to cost advantages. Today, many units have closed down. The remaining have remained medium- or small-sized. Malaysia and China have emerged as competitions. There is no industry body exclusively for animation industry. It is represented either by Nasscom or Ficci. It takes five years for an animation unit to break even. During the gestation period, the unit needs handholding. Animation industry is run by creative people not well-versed in business. Local animation content has not gone beyond mythology and grandma stories. The odds appear stacked against the industry. There should be digital policy and promotion of animation beyond entertainment in the education sector. High-end projects still come to India. The low-end jobs go else where. There shuold be funding available for the animation industry. There will be mergers and acquistions. The quality of training must improve to take care of the high-end work.