The Karnataka government proposes an investment of Rs 150 crore towards the revised Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) policy for the year 2024-2029, chief minister Siddaramaiah said in his budget speech on February 16.
Through the policy, first announced in November and launched in January, the government aims to generate 30,000 jobs in the sector by 2029 as it sets its sights on becoming a global leader in the burgeoning field.
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.
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Karnataka Information Technology Venture Capital Fund (KITVEN), backed by the stare government, also unveiled a dedicated fund for the AVGC sector with a corpus of Rs 20 crore. The fund will invest between Rs 0.5 crore and Rs 2 crore in early-stage startups.
Other measures include providing various financial support measures including reimbursement for skill development and job creation, covering marketing, infrastructure, and compliance costs for early-stage startups and grants for the production of animation films, series, VR/AR/VFX projects, and game development.
The state government also plans to develop an AVGC-XR Park as a Special Economic Zone, establish a Centre of Excellence for Gaming, introduce Technology Business Incubators (TBIs) focused on AVGC-XR sector, expand Centre of Excellence for the AVGC sector and upgrade Digital Art Centres that aim to digitise all fine art colleges across Karnataka.
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This policy came at a time when several state governments, including those in neighbouring Kerala and Tamil Nadu, are preparing to launch policies for the sector.
India's AVGC market is expected to reach $26 billion by FY30, up from about $3 billion in FY21, contributing to about 3 percent of the global market, according to industry estimates. The sector currently employs about 1.8 lakh professionals with 20 lakh jobs expected to be added by 2030.
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