Hi.! Let's get directly to the topic. Animation Industry in India. Unfortunately it's not that large, its quite small. All the animation that India produces, are only for a certain age group of kids.
Well we all know, if a certain business doesn't yield enough, it should be stopped, or decreased slowly. Same goes for TV channels and entertainment companies. In India animation doesn't yield enough. Low response, low TRP, so low profit. Yet a lot of animated shows are telecasted even today. (Not all of them are produced by India though ).
The reason why we can still see these shows on TV is cause of TV channel earning through different means. It earns through commercials
Talking about animation as main, people often think that animated shows are only for kids and not for elder audience. Somehow its a stereotype now, which is absolutely false. Companies like Disney, pixar from west and studios like MAD house from east are making good Content and making good profit as well. The audience they have is quite wide in terms of age. People of all age group watch the shows and movies these companies & studios produce.
The main problem for animation Industry in India a is that people do not acknowledge it enough. Hence Indian studios producing average level of animations which we see on TV today.
India has a lot of talented animators and artists. Few of them are even working for Disney and many other large companies. I am pretty sure if we audience give them the opportunity and acknowledge their work. The Industry will grow well and rapidly and we will have good content to watch.