AVGC Policy to Boost India's Media & Entertainment Sector

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.

Delivering his special address at the inaugural session of the 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.

At the same time, a FICCI-EY report on the M&E sector released at the event said that digital media will potentially overtake television as the leading segment in the media & entertainment sector in 2024 with an estimated size of Rs 75,100 crore.

"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," as per the joint report.

Jaju further said that M&E sector resonates deeply with the diverse tapestry of Indian life and it transcends boundary and fosters unity amongst diversity for a country as diverse as ours.

He said that the accessibility of content over the internet has come with the availability of fairly affordable smartphones and data across every nook and corner of the country.

India has 90 crore internet users, 60 crore+ smartphones and over 4 crore connected TVs. He said and added that digital media segment is witnessing "huge" growth of 30 per cent year-on-year.

According to him, the real shift has come in with the growth of OTT segment.

"We have close to 60 OTT platforms in the country, many of which are in regional languages. The OTT segment is currently valued at rupees ten thousand crores in India. This segment is also drawing foreign investments because of growth of content in our country, Lots of countries are becoming top international market for India's OTT content," Jaju said.

"All these data paves way for looking at M&E sector as a chief contributor to India's soft power and India's ascendance among comity of nations", the official added.

Jaju said that many initiatives are being taken by the Central as well as state Governments to promote the this sector while a lot of reforms have been brought in the TV Broadcasting sector, he said.

A scheme for giving incentives to foreign filmmakers for shooting in India has been announced recently, he said adding that India has signed co-production treaties with multiple countries to ensure that big budget international films come to our country.

This will not only bring in investments but create cross-country linkages and catapult us to showcase our soft power, he added.