This seems to be more a result of cheaper costs more than anything else.
This is probably why when you see the locally made animation films you sense a distinct lack of quality.
So far the Indian animation films have compensated for the lack in finesse by a clever choice of subject - religion and mythology. You can't go wrong with that in India.
But the minute you try a 'roadside romeo', it doesn't see the light of day.
We could do with a quality overhaul I say. :)
How long will it be before India will create animation with the sensitivity of a Disney or the humour of dreamworks?
We need more people with a higher Cartoon Quotient to drive the Indian Industry.
Perhaps the people behind the Indian cartoons have not grown up on a diet of cartoons and comics. People who have would typically have a higher cartoon quotient.
Compare the above picture from 'Roadside Romeo' to the one below from the 1955 Disney film 'Lady & the Tramp'.