Redefining a new era of global blockbuster spectacle

This article is authored by Hemin Bharucha, regional director, London & Partners, the Mayor of London’s international trade and investment agency.

Anchored in a rich history of cultural exchange and cinematic collaboration, the India-UK creative relationship is undergoing a profound transformation. This shared heritage is evolving into a strategic partnership that leverages innovation and technology in visual effects and animation.

VFX

Amplifying the momentum, UK Prime Minister Sir Keir Starmer’s 2025 visit to India saw the announcement that Yash Raj Studios will produce three major films in the UK starting in 2026. This revival, following an eight-year hiatus, is projected to create over 3,000 jobs and deliver a significant boost to UK’s GDP. An example of how India’s stature as the world’s largest film production hub can complement London’s globally recognised leadership in VFX and creative innovation, setting the stage for a powerful bilateral alliance poised to reshape the future of global cinematic storytelling.

With a market value estimated at around $ 2,4 billion as of 2024, the Indian animation and visual effects sector has emerged as one of the fastest-growing creative industries globally. According to forecasts, by 2030, it is projected to reach close to $ 14.7 billion, driven by an impressive CAGR that could range from 15% to 35%, underscoring the sector’s transformative potential.

What once was an ecosystem heavily reliant on outsourcing to international VFX firms, has matured into a powerhouse delivering sophisticated creative outputs, largely owing to domestic digital consumption growth and a maturing talent pipeline. Leading Indian studios have played integral roles in blockbuster productions like Avatar and Thor, contributing significant portions of their VFX work from hubs in Mumbai and other cities. Growth in domestic content driven by OTT platforms, the gaming industry, and collaborative international film projects continues to accelerate this trajectory, even as the sector displays remarkable resilience following Technicolor India’s exit from the market.

This vibrant development in India’s AVGC (Animation, Visual Effects, Gaming, Comics) sector finds a natural counterpart in London’s thriving creative economy. Contributing £124 billion in Gross Value Added and employing one in five city workers, London benefits from a strategic governmental framework that enhances its competitiveness. Further, enhanced tax incentives including the Audio-Visual Expenditure Credit (AVEC) and VFX tax credits offering up to a 39% relief are designed to solidify the UK’s standing as a global creative powerhouse. Complementing fiscal support are investments in institutions such as the British Film Commission alongside initiatives like the Creative Careers Promise, targeting the creation of 1 million new jobs by 2030.

The evolving India-UK corridor in visual effects and animation stands as a powerful example of how creative economies can connect and flourish through shared vision and collaboration. Leading Indian VFX and animation firms including PhantomFX, Prime Focus, Tata Elxsi, and Green Gold have established expanding footprints in London, leveraging supportive government partnerships and high-profile delegations. Collaborations between hybrid UK-India visual effects giants such as DNEG, MPC, and Outpost demonstrate dynamic cross-pollination of talent, technology, and intellectual property. London’s global reputation for Oscar and BAFTA-winning VFX on projects like Gravity and Inception offers a platform for Indian companies to access prestigious projects and clients worldwide. Flagship events such as FOCUS 2025 and Content London also drive ongoing networking and co-production opportunities.

Despite the positive momentum, challenges remain including global competition, talent retention difficulties, and ecosystem resilience post-Technicolor India’s exit. Addressing these risks and nurturing a sustainable talent pipeline and innovation ecosystem requires targeted public investment in R&D, institutional collaboration, and robust public policy and industry alliances. Both nations’ mutual strengths in emerging technologies such as AI-driven VFX, immersive content, real-time rendering, and digital upskilling position the India-London corridor to lead the creative economy’s future.

The India-UK VFX and animation corridor synergises India’s scale and technical expertise with London’s creative prestige and policy support. This partnership promises not just blockbuster spectacles but sustained innovation, significant job creation, and transformative cultural impact on the global screen. As the creative economies interweave, policymakers and corporate stakeholders on both sides can harness this convergence to script the future of cinematic storytelling and creative entrepreneurship.

This article is authored by Hemin Bharucha, regional director, London & Partners, the Mayor of London’s international trade and investment agency.