CII Grant Thorton Report unveils strategic policy roadmap for India’s AVGC-XR Sector
FinTech BizNews Service
Mumbai, August 21, 2024: Information and Broadcasting secretary Mr Sanjay Jaju today released CII-GrantThornton knowledge report titled ‘FX & Beyond: Shaping India’s AVGC Landscape’, at CII Summit FX 2024. The CII-GT report offers a comprehensive analysis of the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector in India, providing growth projections, identifying key challenges, and proposing strategic policy recommendations to unlock the sector’s full potential.
The AVGC-XR sector is rapidly emerging as a significant player within India’s Media and Entertainment (M&E) industry. Currently, the AVGC-XR sector accounts for approximately 20 per cent of India’s Media and Entertainment (M&E) industry and is poised for further expansion. According to CII GT report, the Animation & VFX segment is expected to surge from USD 1.3 billion in 2023 to USD 2.2 billion by 2026, increasing its share of the M&E industry from 5 per cent to 6 per cent during this period. The online gaming industry, valued at USD 2.62 billion, is expected to reach USD 4.6 billion by 2026, with its contribution to the M&E sector rising from 10 per cent to 13 per cent.
The report underscores the sector’s potential as a major employment driver. The sector is expected to create of over 160,000 new jobs annually, with a total of 20 lakhnew jobs anticipated by 2030.
To fully harness the sector’s potential, the report calls for the swift implementation of the National Draft Policy Framework for AVGC-XR. Key recommendations include establishing a self-sustainable fund to support small and medium-scale content developers, with clear budget allocation and an inclusive scope that extends to training institutes, technology providers, and marketing efforts. The report also recommends establishment of a National AVGC-XR Mission to provide a clear roadmap for the sector, leveraging India’s cultural heritage to appeal globally, and reducing import duties on essential equipment to spur sector growth.
Further, the CII GT report advocates for enhanced Intellectual Property Rights to retain talent and content and introduction of clear regulatory definitions within the gaming industry. The report also calls for enhanced support for AVGC-XR entrepreneurs through Start-Up India and strategic investments in the National Centre of Excellence to foster innovation and global competitiveness. To scale up and maximize revenue in the AVGC sector, businesses in the sector should focus on making Indian content globally marketable, adopt a digital-first strategy, close the skill gap through targeted training, invest in research and development, and focus on creating original IPs to secure long-term revenue streams and global recognition for Indian content.
Sanjay Jaju, Secretary, Ministry of Information and Broadcasting, said: “National AVGC-XR Policy will be implemented soon in tandem with the National AVGC-XR mission. We need to build complete ecosystems where high-end content is produced and taken across the world to create economic and employment potential on a large scale.”
Atul Kumar Tiwari, Secretary, Ministry of Skills & Entrepreneurship, explained: “Our initiative to revamp 1000 ITIs is pivotal in aligning workforce skills with AVGC industry needs. By focusing on skill development and regional growth, we are poised to significantly advance the sector's capabilities and job opportunities.”
