The Indian animation and gaming industry is expected to reach $1.25 billion by 2009, but issues like inadequate human resources, investment and the demand from the entertainment sector need to be addressed immediately, says a Nasscom study.

Stating that the industry was not geared to tap the huge potential offered by the global animation and gaming market, the IT industry's lobby group called upon the government to take measures to use the creative skills of people from rural areas.

The National Association of Software and Service Companies (Nasscom) also asked the government to set up institutions for training and offer various incentives like setting up special economic zones, fund for start-ups and sops to the entertainment industry to help create demand.

The report, released at the Animation India 2006 meet that began here Thursday, said the animation industry was expected to go up from present $285 million to $950 million in four years while the gaming industry would witness tenfold growth to reach $300 million.

Addressing the conference and later talking to reporters, Nasscom president Kiran Karnik said the industry, which lacked adequate human talent, needed 30,000 people to meet these projections.

Pointing out that Indian animation and gaming industry accounts for under one percent of the global market, Karnik said with IT expertise, creative skills, growth of mobile telephony, increase in personal computers and greater use of animation content, there was no reason why India could not catch up with the world.

He called for exploiting the immense creative skills in rural areas but said there were only few institutions to do this.

"Only the National Institute of Design, Ahmedabad is providing training. We need many institutions," he said, pointing out that Andhra Pradesh planned to set up an animation academy.

The Nasscom president suggested that the government allocate a SEZ or part of it for the industry to develop in a cluster.

"Since this is a capital intensive sector, the government may set up a fund to help start-ups and provide loans at concessional rates."

Karnik also recommended that some part of television programmes should have animation content to create demand and the government give incentives for the same.

"We have a vibrant film industry but we failed to create demand for animation," he said and suggested that short animation films could be shown in theatres before feature films to promote the sector.

He said major international studios were looking at India but the industry was not geared for this.