Karnataka Minister Priyank Kharge Calls for Policy Support to Boost India's Share in Global Animation and Gaming Market

Bengaluru, Feb 27: Karnataka’s Minister for Information Technology and Biotechnology, Priyank Kharge, has emphasized the urgent need for progressive policies to expand India's footprint in the global Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector. Speaking at the inaugural session of Bengaluru GAFX-2025, a premier event for the AVGC-XR industry, Kharge underscored India's potential to scale its market share significantly with the right framework.

Currently, India contributes less than one percent to the global AVGC-XR market, but with strategic interventions, this could increase to three percent by FY30, reaching an estimated $26 billion, he stated. The global AVGC-XR market, valued at $596.7 billion, is projected to grow to $882 billion by 2030.

Rapid Growth in India's AVGC and Gaming Sector​

Kharge highlighted the strong Compound Annual Growth Rate (CAGR) of India's AVGC industry:

• Animation and VFX is growing at 10.94% CAGR
• Gaming is expanding at 9.64% CAGR
• Indian gaming startups secured $350 million in venture capital funding between 2014 and 2020, with the sector growing at a staggering 22% CAGR.

He also pointed out that India's AVGC industry is export-driven, with 70-80% of the work catering to global markets, positioning India as a key player in outsourcing creative and technical services. The global AVGC industry is expected to grow at an estimated CAGR of 37% by 2031, further opening avenues for India's growth.

India’s Expanding Online Gaming Market​

Discussing the surge in India’s online gaming industry, Kharge stated that it currently stands at $2.6 billion and is projected to double by 2025. He noted that India is already outpacing significant markets like China in-game downloads, signifying a booming domestic market.

Karnataka’s Role as an AVGC-XR Hub​

Karnataka is taking a leadership role in the sector, with over 300 AVGC companies contributing nearly 20% to India's overall AVGC output. The state’s AVGC Policy 2024-2029 aims to establish Centers of Excellence, provide world-class training, and bolster R&D initiatives to support industry growth.

The minister reaffirmed Karnataka’s vision to emerge as a global hub for digital content creation, leveraging its strong ecosystem and policy-driven approach.