Context: In the Budget 2022-23, the government announced to set up ‘Animation, Visual Effects, Gaming and Comics’ (AVGC) task force to “build domestic capacity to serve Indian markets and global demand.”

Potential of Animation, Visual Effects, Gaming, and Comics (AVGC) sector in India

• According to a recent analysis by Sequoia India and BCG, India’s gaming business generates $1.5 billion in sales and is anticipated to triple to more than $5 billion by 2025.
• By 2030, the Indian media and entertainment industry is predicted to grow at a rate of nine to eleven percent compound annual growth rate (CAGR).

Key Significance of  AVGC sector in India

• Young professionals will have a lot of opportunities in the AVGC sector, and new job prospects will be created for them.
• The AVGC industry will transform India into a worldwide player in the interactive entertainment arena, resulting in a high talent pool of developers and creative artists.
• The rise of the startup sector, together with the promotion of AVGC, will have a multiplier effect on the economy, resulting in an overall increase in GDP.
• Newer industry developments, such as metaverse and education digitization, could aid the AVGC sector’s growth in India and prepare it to lead global change.

Government Measures

AVGC Center of Excellence (CoE): The Ministry of Information and Broadcasting (MIB) in 2020 announced that it will establish AVGC Center of Excellence (CoE) on the back of the belief that gamification and animation.

• Recently, the Karnataka government launched an AVGC Center of Excellence (CoE) in Bengaluru consisting of a high technology digital media hub.

AVGC Task Force: Union Budget 2022 announced the creation of a new task force for AVGC industry with the help of all stakeholders to look at various ways in which domestic capacity is built and serve the global demand in the sector.

Key Suggestion

• Gaming as an industry has been gaining popularity in the country in recent years, especially with the digital push. 
• It is necessary to find ways to formalise some of the education in this sphere, so that the country has animators, designers and people who can conceptualise, code and create those games and environments from India.
• AVGC is best for job development since it focuses on creative content creation, which requires a lot of human capital and cannot be automated. 
• An expansion of the credit line guarantee scheme will bring much-needed relief to the sectors impacted due to the pandemic.

Road Ahead

• The announcement of an AVGC promotion task force for the industry as it will provide means to the new talent in the industry with direction and opportunities and in turn, cater to skilled manpower needs in the gaming space.