Budget's AVGC labs proposal a 'landmark step', will expand creative talent pool, top executives say

• Government to set up AVGC Content Creator Labs in 15,000 schools and 500 colleges across India
• Rs 250 crore allocated to set up these labs
• Industry leaders: Move will boost India's creative economy and global competitiveness.

Did our AI summary help?

The government’s plan to set up animation, visual effects, gaming and comics (AVGC) Content Creator Labs in 15,000 schools and 500 colleges is a landmark step towards formalising India’s creator economy and expanding its creative talent pool, top industry executives have said.

In her Budget speech on February 1, finance minister Nirmala Sitharaman highlighted the scale of the opportunity, noting that the sector is projected to require 2 million professionals by 2030.

Sitharaman proposed to support Indian institute of Creative Technologies (IICT) in Mumbai in setting up these labs with an outlay of Rs 250 crore in Budget 2026-27.

'Will build grassroots talent'

Nazara Technologies founder Nitish Mittersain said such initiatives “will help build strong grassroots talent and long-term industry capacity”.

“This is not just about employment — it’s about creating original Indian IP, strengthening our creative economy, and positioning Bharat as a global hub for gaming and interactive entertainment. With consistent execution, this can become a real catalyst for the next phase of industry growth,” he said.

Rajan Navani, chairman of digital entertainment and technology company JetSynthesys, the move signalled government’s recognition of the economic value of youth-led creation and its active support for their growth.

“This acknowledgement reinforces the critical role that creativity, content, and digital-first industries will play in shaping India’s next phase of economic expansion,” he said.

Navani, who is a member of the Board of Directors of IICT, said it is a “powerful step towards expanding the creative talent pool while simultaneously raising the bar for world-class capabilities and quality, laying a strong foundation for Bharat’s creative industries to compete globally”.

Lakshya Digital founder Manvendra Shukul, also an IICT board member, said that Budget demonstrates a clear commitment to the AVGC industry by moving beyond intent and investing directly in talent creation at scale.

“The focus on building industry-ready skills and enabling 2 million jobs by 2030 addresses one of the sector's most pressing challenges — creating a future-ready workforce aligned with global production standards,” Shukul said.

“India is signalling its ambition to move beyond being a service provider and toward building original intellectual property, world-class studios, and globally competitive titles that are conceived, created, and owned in India.”

Zee Entertainment CEO Punit Goenka said by encouraging investments in content, creativity, innovation and talent development through content creator labs coupled with deeper adoption of emerging technologies will "unlock the value" of high-potential segments across the media and entertainment ecosystem.

'Strong signal to investors'

The Budget 2026’s alignment of AVGC with XR also “sends a strong signal to global investors that India is serious about building the future of interactive media”, said Anuj Tandon, Partner-India & UAE, Bitkraft Ventures.

“By supporting this ecosystem through policy clarity, skilling and infrastructure, the government is going for the long-term view in creating grassroot skills for the sector that will make India a stand out market.”

ShareChat cofounder Ankush Sachdeva called the proposal a “timely move” towards professionalising India’s creator economy, which today influences over 30 percent of consumer purchase decisions and nearly $350–400 billion in consumer spending.

“By enabling early, formal training in animation, visual storytelling and short-form content creation, this initiative will help creators build sustainable careers, improve content quality, and unlock the next phase of creator-led commerce as creator-influenced spending moves towards $1 trillion by 2030,” he said.

Manish Agarwal, board member, GDAI (Game Developer Association of India), called the proposal as a “landmark step toward building India’s next generation of game designers and developers”

“Over the past few years, GDAI has been closely engaging with government stakeholders to help shape a long-term talent pipeline that starts at the school level and extends through higher education and industry readiness,” he said.

With an allocation of Rs 391.15 crore, IICT is being developed on the lines of IITs and IIMs for creative technologies, including AVGC-XR. It is backed by the Ministry of Information & Broadcasting (I&B), Government of Maharashtra, FICCI, and CII.

IICT is expected to serve as a global centre of excellence for education, research, innovation, and skill development in the AVGC-XR sector and will be located at the Dadasaheb Phalke Film City in Mumbai's Goregaon suburb.

Parth Chadha, co-founder of gaming community app Stan, said seeing creator labs come into schools and colleges is a powerful signal that the country is preparing the next generation for careers in the creative and digital world.

“What started as a grassroots movement is now part of India’s broader vision for the ‘orange economy,’” he said.