It is assumed proudly by the Indians that Indian animation has additionally reached a considerable position inside the world state of affairs and is capable of making its manner to the world enterprise. But even after all things, truly saying that Indian animation still is in the meager position. Indian animation had been initiated in the nineteen century. If it is in reference to producing the quality of animation, India still is in a poor position. Indian animation in particular-2D and 3D, concerning animated film or series, has to face many challenges of struggling differently for the world scenario in terms of other countries. This study is going to look at all the causes, issues and circumstances under which Indian animation (2D, 3D) is still in dilemma about its position, in this respect the study will provide valuable data and scientific justification on the same.