AVGC-XR and the Quest for India's
Creative Renaissance
"Play and you'll ruin yourself, study and you'll be a prince" - a saying we've heard countless times from our grandparents, often accompanied by a scolding. However, in today's tech-driven world, this old adage feels outdated and almost comical. Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) are now poised to enter the mainstream. On September 18, the Central Government approved the establishment of the National Center of Excellence in AVGC-XR, marking India's bold entry into global competition in this domain.
In this digital age, where technology is at the forefront of everything, we can harness our skills and knowledge to thrive in this vast landscape and shape a self-reliant, prosperous future. The government-approved AVGC-XR initiative isn't just about mastering a single skill, it represents a fusion of multiple disciplines. AVGC has transformed traditional caricatures, sketches, cartoons, and illustrations into dynamic digital forms, while XR and gaming introduce new computer-driven art forms. This approval holds significant global, national, and employment implications, which we will explore in detail.
Expected Impact of AVGC-XR on the Indian Economy
The Animation, Visual Effects, Gaming, and Comics (AVGC) sector, enhanced by extended reality (XR), is becoming a key driver of India's economy. Combining creativity with cutting-edge technology, AVGC-XR presents vast opportunities for innovation and growth.
The AVGC-XR industry is projected to significantly boost India's GDP, potentially growing into a multi-billion-dollar sector. This expansion is expected to generate thousands of new jobs across a range of roles, from software development to creative fields like design and storytelling. With government support through tax incentives and funding for startups, the sector is set for remarkable growth.
Global Trends Driving Growth in AVGC Sector
The global animation and visual effects market size was estimated at USD 168 billion in 2021 and is projected to grow to USD 290 billion by 2024 at a CAGR of 10.94% between 2020 and 2026 . One of the main factors leading to the development of the VFX market worldwide is the introduction of Augmented Reality (AR). The increasing demand for digital content has created a need for innovation in visual effects for new experiences like AR.
The global gaming market was valued at USD 198.4 billion in 2020 and is expected to reach USD 314.4 billion by 2026, growing at a CAGR of 9.64% between 2021 and 2026. As per estimates for 2021, there are 2.7 billion gamers across the world with China, Japan, US, and UK combined representing 47% of all gamers globally and 64% of all direct consumers spend on gaming. Asia-Pacific is anticipated to hold the largest market share in the gaming industry, with India, Japan, China, and South Korea showing high potential for market growth. The global Comic Book market size is projected to reach US$ 19.5 billion by 2028, from US$ 11.8 billion in 2021, at a CAGR of 7.1% during 2022-2028.
Conclusion
The AVGC-XR policy represents a transformative initiative that has the potential to reshape India's creative landscape. By focusing on the Animation, Visual Effects, Gaming, and Comics sectors, coupled with extended reality technologies, the policy aims to harness the country's vast talent pool and rich cultural heritage.
The government's commitment to providing a robust framework, financial incentives, and skill development programmes is vital for fostering innovation and competitiveness in this rapidly evolving industry. Furthermore, the establishment of AVGC hubs and promotion of international collaborations will enhance India's standing as a global leader in creative content production.
As the AVGC-XR sector continues to grow, it holds the promise of significant economic contributions and job creation, making it essential for policymakers to maintain momentum and adapt to emerging trends. With strategic implementation and ongoing support, the AVGC-XR policy can unlock new avenues for growth, ultimately positioning India as a powerhouse in the global creative economy.
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What Makes India a Strong Contender
• Cultural Heritage & Skilled Workforce: India's rich cultural heritage, combined with a skilled and cost-effective workforce, positions the country as a global hub in the AVGC-XR sector.
• Attractive Outsourcing Destination: Indian studios offer high-quality output at competitive costs, making the country a preferred destination for international projects, including animation for movies, visual effects for media, and gaming design.
• Global Collaborations: Indian studios are increasingly collaborating with major global players like Disney, Warner Bros., and Sony, enhancing their visibility and adopting international best practices.
• Growing Talent Pool: India's talent base in AVGC-XR is expanding, supported by specialised educational programmes and training institutes that nurture creativity and technical expertise.
• Government Support: The Government of India is fostering the sector's growth through initiatives such as the National Center of Excellence in AVGC-XR, providing infrastructure, tax incentives, and support for startups.
• International Recognition: Indian artists, animators, and developers are gaining global recognition for their creativity and skills, further elevating India's reputation in the AVGC-XR ecosystem.
• Leadership Potential: With a growing presence in global content creation and technology-driven storytelling, India is poised to become a leader in the AVGC-XR market, driving innovation and competitiveness on the world stage.
Challenges Facing the AVGC-XR Sector
Infrastructure Deficits: The lack of robust technological infrastructure, including reliable internet access and high-performance computing facilities, impedes effective content creation and distribution.
Skill Gaps: Despite increasing interest in AVGC-XR careers, specialised training programmes are limited. Bridging these skill gaps is essential through educational initiatives and partnerships with industry leaders.
Intellectual Property Concerns: As the sector expands, complexities surrounding copyright and intellectual property rights emerge. A clear regulatory framework is necessary to protect creators and foster innovation.
Market Saturation: An influx of new players has led to intense competition, requiring established companies to innovate continuously to maintain their market positions.
Investment Challenges: Startups in the AVGC-XR space often struggle to secure funding. Increased investment from public and private sectors is crucial for sustainable growth.
Proposed Interventions
Development of Progressive Policies: Establishing a National AVGC Policy will define the growth trajectory of the sector and provide a structured approach to development.
National Center of Excellence: Creating a National Center of Excellence for AVGC in collaboration with industry and academia will foster innovation and skill development.
Regional Centers of Excellence: Developing Centers of Excellence across the country, in partnership with State Governments, will enhance local capabilities and resources.
Standardisation and Alignment: Establishing standards for skilling, education, and content delivery in line with international benchmarks will ensure quality and relevance in the sector.
Representation of Smaller Cities: Ensuring that Tier 2 and Tier 3 towns are included in the AVGC landscape will promote a more inclusive industry and tap into diverse talent pools.
(Compiled by Sudhit Mishra, EN Team)