Indian toons are all set to take over cartoon shows on television channels, thanks to a local acquisition drive by international cartoon networks and outsourcing of animation works to India by foreign companies.

It all started with Jungle Book's Mowgli over a decade ago. We now have on air the animated Ramayana, Pandavas, Sinbad and Tenali Raman. Hanuman will shortly join the list.

Industry sources say India will bring out better versions of Mickey Mouse, Donald Duck, Tom and Jerry and other cartoon characters that were so far being developed by US and European companies.

Indian epics, with its mix of rich mythology, epic dramas, fantasies and colourful characters are the right stuff for animated cartoons. Their popularity shows the kind of opportunities in India for animation, says Anshuman Misra, managing director, Turner International India.

"Showcasing relevant Indian content is an integral part of our localisation strategy for India. Over the last two years, we have acquired four locally produced animations," says Ian Diamond, senior vice president, Turner Entertainment Networks Asia, Inc.

"We recently conducted a survey on what Indian children prefer. We found that animation and action were very popular. They also liked animation based on Indian characters and stories as it was a part of their culture," says Diamond.

The ratings also show the popularity of these Indian animation films, he says.

Although India's exposure to cartoon animation is meagre, many companies are fast offering quality work. This has also been prompted by global recession that caused considerable damage to some international cartoon animation firms.

India thus remains the only place where work can be outsourced. Though China is a big competitor, India has the edge thanks to its command over English.

According to a recent industry survey, the Indian animation industry, which is now pegged at $550 million is expected to grow at 30 per cent annually in the next couple of years and reach $15 billion by 2010.

To meet both domestic and export demand, around 40 Indian companies are making strides into the 2-D and 3-D animation market. Indian entrepreneurs have set up state-of-the-art special effects studios in Bangalore, Chennai, Delhi, Hyderabad, Mumbai and Thiruvananthapuram to garner a major chunk of the global business.