Bridging the skill gap in animation and gaming through AVGC policies

The global AVGC industry is expanding at an unprecedented rate. The animation and VFX segment alone is projected to reach $282.3 billion by financial year 2026. Karnataka, with its rich ecosystem of creative talent, premier educational institutions, and dynamic startups, is uniquely positioned to unlock this potential.

Karnataka is leading India’s growing Animation, Visual Effects, Gaming, and Comics (AVGC) sector, propelled by progressive government policies aimed at nurturing creativity, fostering innovation, and developing a skilled workforce. With deep roots in both technology and culture, Karnataka is taking decisive steps to position itself as a global hub for the AVGC industry. The theme for this year’s GAFX event, Imagination Next, captures the state’s vision to drive the future of digital entertainment through imagination, innovation, and infrastructure. 

The global AVGC industry is expanding at an unprecedented rate. The animation and VFX segment alone is projected to reach $282.3 billion by financial year 2026, while the gaming industry is expected to grow to $314.4 billion in the same period. By FY30, the combined global AVGC-XR market is expected to surge to an astounding $882 billion. Despite this growth, India’s contribution remains under 1%. Karnataka, with its rich ecosystem of creative talent, premier educational institutions, and dynamic startups, is uniquely positioned to unlock this potential.

The Karnataka government recognises the AVGC sector’s strategic importance—not only as an economic driver but as a critical industry impacting education, healthcare, advertising, and architecture. To tap into this potential, the state has launched pioneering initiatives to bridge skills gaps and accelerate growth.

Karnataka’s dedicated AVGC policy provides a comprehensive framework of financial incentives, skill development programmes, infrastructure support, and startup incubation. A cornerstone of this effort is the establishment of Digital Arts Centres (DAC) within fine arts institutions statewide. Equipped with advanced technology, these centres offer specialised training in animation, gaming, visual effects, and other emerging fields, aligning curricula with industry demands to ensure that students are job-ready. So far, 27 DACs have trained 648 students, with over 150 successfully placed in industry roles.

The Nipuna Karnataka initiative, with an estimated budget of Rs 300 crore, further strengthens the state’s commitment to continuous workforce development. This initiative serves both fresh graduates and mid-career professionals needing skills in technologies like Extended Reality (XR), artificial intelligence, and virtual production, building a future-ready talent pool.

In addition to skilling, Karnataka is creating a robust ecosystem to support AVGC startups and small and medium-sized enterprises (SMEs). This includes the establishment of Centres of Excellence (CoE) for AVGC-XR, which provides startups with access to the latest tools, mentoring, and global networks. The CoE in Bengaluru offers state-of-the-art post-production infrastructure, giving the audio-visual industry a significant boost.

Karnataka is also in the process of setting up a dedicated AVGC-XR park, equipped with the latest technology to foster collaboration among industry players. This park will act as an innovation hub, with virtual production facilities, common instrumentation spaces, and venues for hackathons and industry events. The park will encourage cross-pollination of ideas, allowing startups and established companies to collaborate.

Additionally, incubation spaces are being established in six other cities, expanding AVGC innovation beyond Bengaluru. These incubators will provide critical support to startups in smaller cities, ensuring that the AVGC sector flourishes not just in urban centres but across the state.

Karnataka’s AVGC leadership extends beyond its borders. Through participation in global digital entertainment trade fairs such as the Annecy International Film Festival and MIPCOM, the state showcases its vibrant AVGC ecosystem, talented workforce, and successful homegrown companies. The International Market Access policy supports startups aiming for global reach by offering financial incentives of up to Rs 5 lakh, enabling Karnataka-based AVGC companies to participate in international events and market their products and services globally.

The annual Bengaluru GAFX event, a flagship initiative of the Karnataka government, plays a pivotal role in fostering industry connections and promoting the AVGC-XR sector. The 2024 edition of GAFX, themed Imagination Next, hosted 130 speakers, including 22 global experts from 10 different countries, and featured 115 sessions covering a wide range of topics from policy deliberations to live competitions. The event also hosted B2B meetings aimed at driving business growth for startups, reinforcing Karnataka’s position as a global hub for the AVGC industry.

Karnataka’s vision for the AVGC sector is anchored on six key pillars:

1. Skill Development: Continuous, industry-aligned training programmes.
2. Sustainable Infrastructure Development: Dedicated spaces and cutting-edge technology to support creative production.
3. Startups & MSME Empowerment: Access to funding, mentorship, and global networks.
4. Global Market Access: Facilitation of international partnerships and exposure for domestic enterprises.
5. Financial Incentives & Concessions: Tax breaks and subsidies for business growth.
6. Multiplatform AVGC-XR Products: Focus on emerging technologies like AR/VR, gaming, and digital media.

With these pillars, Karnataka aims to create 30,000 high-quality jobs in the AVGC sector by 2029. The state’s AVGC policy is not just about fostering economic growth—it is about creating an ecosystem that nurtures creativity, empowers talent, and positions Karnataka as a global leader in the AVGC-XR revolution.

As these strategic efforts unfold, Karnataka is on its way to establishing itself as a global AVGC leader, contributing significantly to the state’s economy and cultural landscape. By bridging the skills gap, fostering an ecosystem for startups, and promoting global collaboration, Karnataka is bringing the vision of Imagination Next to life and leading the future of digital entertainment.

(The writer is Secretary, Department of Electronics, Information Technology, Biotechnology, and Science & Technology, Government of Karnataka)