Karnataka IT-BT Minister Priyank Kharge has set his sights on making Karnataka as a leading esports hub, as the southern state looks to tap into the sector's rising popularity in the country.
"This year, I am hopeful that we will be hosting our own National Esports Festival. My intention is to hold the nation's and perhaps Asia's biggest esporting festival for our gaming community" Kharge said during his speech at Bengaluru GAFX 2025 conference on February 27. However, he didn't disclose any further details.
The conference, now in its sixth edition, is organised by the Department of Electronics, Information Technology and Biotechnology, Government of Karnataka in collaboration with non-profit organisation ABAI. Targeted at the fast-growing animation, visual effects, gaming, comics, and extended reality (AVGC-XR) industry, Bengaluru GAFX 2025 is expected to attract over 20,000 attendees across the three-day event.
The conference is hosting the final competition for an esports national championship wherein the country's top four esports team from different regions are battling it out on the Counter-Strike 2 title.
The Indian esports market is expected to reach $919 million by 2033, growing at a compound annual growth rate (CAGR) of 18.42 percent between 2025-2033, according to market research firm IMARC Group.
Bengaluru GAFX 2025 is also hosting an investor connect initiative, Kharge said, wherein over 25 leading investors are engaging with 50 AVGC-XR startups, offering funding and mentorship opportunities.
These measures come as Karnataka aims to become the frontrunner in this space, amid growing competition from other states such as Tamil Nadu, Telangana, Maharashtra, and Kerala. Kharge also wants the state to be a major contributor to India's ambition of becoming a global leader in the sector.
"Our professionals are not just contributing to global projects—they are leading them, bringing unique perspectives and unmatched expertise to the forefront. In animation and visual effects, Indian artists are instrumental in delivering cutting-edge visuals for domestic and international productions. Our contributions have garnered global acclaim, positioning India as a hub of high-quality animation and VFX services" he said.
The Karnataka Government is also establishing a Global Innovation Alliance (GIA), bringing together France, Australia, the United Kingdown, Scotland, Uzbekistan, and Italy to foster global collaborations in AVGC-XR.
50,000 jobs in the next 3-4 years
Last year, the Karnataka government earmarked an investment of Rs 150 crore for its revised AVGC-XR policy for the year 2024-2029. Through the policy, which was first announced in November 2023 and launched in January 2024, the state government aims to generate 50,000 jobs over the next three to four years.
The government is also looking to create a talent pool by transforming the state into a centre of excellence for AVGC-related skills and ensure that exports constitute at least 80 percent of the sector's total revenue. The gaming Center of Excellence (CoE is expected to serve as the destination for innovation, research, and development in the gaming sector.
Also in the works is an AVGC-XR Park that will offer production studios, incubation spaces, and research facilities, said Dr. Ekroop Caur, Secretary, Department of Electronics, IT, Bt, Science & Technology, Government of Karnataka, during her speech at the event.
"By 2029, we aim for a 30 percent increase in operational efficiency, a 20 percent boost in creative output, and a 25 percent expansion in digital marketing reach" she said.
Karnataka is home to over 300 AVGC studios and more than 15,000 professionals, Caur said "With India’s 500 million gamers, Karnataka leads with the highest number of gaming startups, positioning Bengaluru as the hub for next-gen game development. Our AVGC-XR fund, the first of its kind in India, supports startups and SMEs with investments up to Rs 2 crore" she said.
Kharge added that "By leveraging the potential of both the policy, the policymakers, and the private sector, we can drive innovation, expand opportunities for creative professionals, and ultimately generate a significant number of jobs"
"This will not only benefit individual creators but also strengthen the broader economic landscape by encouraging entrepreneurship, digital transformation, and consistent growth in the sector" he said.
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