AVGC Policy: Boosting Investments & Innovation in India

Mumbai, Mar 5 (PTI) The proposed policy related to animation, visual effects, gaming and comics (AVGC), once implemented, will facilitate investments, foster innovation and contribute to building world-class infrastructure in the country, Secretary in the Ministry of Information and Broadcasting Sanjay Jaju said on Tuesday.

Speaking at 24th edition of the media and industry event 'Ficci Frames' here, Jaju also said the government's focus will be on creating a conducive environment for the industry to thrive.

"I can assure you that this (AVGC) policy is not only going to facilitate investments within our country and the states but will also foster innovation," he said and added that the policy is in the advanced stages.

The policy, when in place, will ensure skill development, help protect intellectual property and will also contribute to building world-class infrastructure, he said.

"We also envisage setting up a national centre of excellence for animation, VFX, and extended reality sector along with setting up incubation centres," he added.

He said the government recognises the pivotal role that the Indian media and entertainment (M&E) sector plays in shaping our society, influencing our perspectives, and reflecting our collective efforts.

"India is going through a digital transformation phase and the sector is also witnessing rapid shifts with the availability of content which is online," he added.

The country is also witnessing a rapid increase in foreign investments, especially in the OTT (over-the-top media services) segment, Jaju added.

He further said the government also wants foreign filmmakers to make films in India.

"Our focus will be on creating a conducive environment for the industry to thrive. All stakeholders need to collaborate and innovate to capitalise on the huge opportunities," he noted.

In 2023, the government laid out guidelines for releasing games and the AVGC committee took shape.

AVGC is considered to be a sunrise sector after information & technology (IT).

The animation and VFX industry grew 6 per cent to reach Rs 114 billion (Rs 11,400 crore) in 2023.

"The segment is expected to grow at a CAGR (Compound Annual Growth Rate) of 17.5 per cent by 2026 to reach Rs 185 billion," said a joint report on M&E released by FICCI and EY on Tuesday.