The Karnataka government aims to generate 30,000 new jobs in the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector by 2028, as the state government sets its sights on becoming a leader in the burgeoning sector.
The revised policy was unveiled by Karnataka Chief Minister Siddaramaiah, Deputy Chief Minister DK Shivakumar and state IT-BT Minister Priyank Kharge among other dignitaries at the Bengaluru Tech Summit on November 29.
This policy comes at a time when several state governments including Kerala and Tamil Nadu are preparing to launch their own respective policies for the sector.
In December 2022, an Animation, Visual Effects, Gaming and Comic (AVGC) Task Force had recommended a National AVGC-XR Mission with a budget outlay to be created for integrated promotion and growth of the AVGC sector along with a ‘Create in India’ campaign with exclusive focus on content creation in India for India and for the world.
During his address at the Bengaluru Tech Summit on November 28, Siddaramaiah said this policy is a "testament to the state government's ongoing commitment and progressive approach in leading the nation’s AVGC sector towards global excellence"
Through this policy, the state said it aims 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.
Among the proposed measures include creating an AVGC venture fund (KITVEN AVGC FUND), establishing incubators and accelerators, setting up regulatory sandboxes, providing financial incentives through KITVEN Fund-4 (AVGC) that has a corpus of Rs 20 crore, providing special incentives and R&D grants for companies focusing on mobile-first products, and creating a state-level AVGC IP marketplace utilising blockchain technology.
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.
In addition, the government also plans to provide various financial support measures including reimbursement for skill development and job creation, covering marketing, infrastructure, and compliance costs for early-stage startups, grants for production of animation films, series, VR/AR/VFX projects, and game development, R&D incentives, and technology adoption support for acquiring new tools and software.
India contributed about $2.5-3 billion of the estimated $260-275 billion worldwide AVGC market, according to a 2022 report from AVGC taskforce. According to industry experts, the AVGC sector employs about 1.85 lakh professionals, with another 30,000 who are indirectly employed and the sector can witness a growth of 14-16 percent in the next decade.
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