Did you watch 'Duck Tales' or 'He-Man' as a child? Then you already know what Animation is. Basically, it is a technique of art which causes pictures or images to look like they are moving. The Animation industry in India & internationally is very huge & growing. There is a big market for animated films, advertising campaigns, educational CDs, websites with animation, etc.
VFX or Visual Effects are a way of mixing real film shooting with false or animated images. For instance, a movie that shows the hero jumping off the ground and flying into the air, is created using VFX. Almost every single movie these days uses VFX.