Given the changing demographics of gamers and consumer preferences, globally, online gaming has surpassed the combined size of the movie and music industries combined. In India, online gaming anchors the content creation and monetization for the larger AVGC-XR sector. Gaming is the key to solving for the growth in the AVGC-XR sector in India.
Few sectors have as much potential to position India as a global hub for content creation, consumer technology, and innovation as the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) industry. Within the AVGC-XR ecosystem, online gaming’s rising domination of domestic and global media and entertainment markets can particularly shift India’s role in the digital entertainment sector, from a service-oriented model to one that prioritizes the creation of original intellectual property.
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Globally, the online gaming market size has long surpassed the movie and music industry size combined. By fostering homegrown content and exporting it worldwide, India can strengthen its soft power while establishing itself as a global powerhouse in digital entertainment and innovation. India has the stories, the epics, and the talent to dominate the global AVGC-XR market.
With the right mix of government support and industry recognition, India is poised to lead in gaming and original content creation, aligning with the government’s broader goal of taking Indian culture abroad.
India’s AVGC-XR takeover: Fueling the creation of 20 lakh jobs in India’s “techade”
Fueled by rapid advancements in telecom, mobile connectivity, and cutting-edge technologies like AI and AR/VR, India’s AVGC-XR sector is undergoing robust growth. Projected to become a USD 26 billion industry by 2030, its impact is no longer confined to metro cities—it is evolving into a true pan-India success story.
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While the sector currently employs an estimated 260,000 professionals, it is set to generate a staggering 2.3 million jobs by 2032, spanning gaming, animation, VFX, and extended reality..The sector is no longer limited to Mumbai, Bengaluru, and Hyderabad, as studios and production hubs are now emerging in Pune, Chennai, Noida, Kolkata, Indore, and even smaller towns, reflecting the growing nationwide adoption of digital content creation.
The country already boasts over 4,000 AVGC-XR studios, with more than 100 studios developing high-quality content for global markets. With initiatives like the Skill India Mission aiming to train 20 lakh professionals over the next decade, India is on track to becoming a dominant force in the global AVGC-XR ecosystem.
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The ‘G’ in AVGC-XR: Gaming steers the revenue growth of new media in India
Significantly, the gaming industry has overtaken traditional entertainment sectors like film, OTT, and music, becoming the dominant force in global media. In India, the new media market—valued at USD 12.5 billion in FY24—saw gaming contribute significantly at USD 3.7 billion. This growth is driven by a convergence of technological advancement, an expanding digital consumer base, and progressive government policies. The establishment of specialized Centers of Excellence (CoEs) and other government initiatives continue to bolster India’s gaming industry, and are bound to enable the creation of innovative and culturally rich digital entertainment that resonates with both domestic and international audiences.
India’s Regulatory and Policy Landscape is Conducive to AVGC-XR Growth, Including Online Gaming
Recognizing the AVGC-XR sector’s immense potential, the Indian government took a decisive step in April 2022 by constituting the AVGC Promotion Task Force under the Ministry of Information and Broadcasting (MIB) which accentuated the policy support for the sector. The Task Force’s recommendations laid the foundation for a National AVGC-XR Mission strengthening India’s position as a global AVGC-XR hub.
It called for the establishment of a National Center of Excellence (CoEs), Regional Centres of Excellence (RCoEs), and a focus on intellectual property (IP) creation, shifting the industry from a service-oriented model to one that generates original content based on indigenous IP. Furthermore, the Task Force advocated for state-level AVGC-XR policies, leading to proactive measures from Karnataka, Rajasthan, Kerala, and Madhya Pradesh, among others, which are now investing in infrastructure, talent development, and industry incentives through state-specific AVGC-XR Policies.
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In 2024, the Government of India approved the establishment of a National Centre of Excellence (NCoE), also referred to as the Indian Institute of Creative Technologies (IICT), for AVGC-XR in Mumbai. This center aims to create a world-class talent pool in India to cater to both domestic and international markets.
The NCoE is expected to enhance India’s soft power globally and attract foreign investment by positioning the country as a hub for state-of-the-art content creation. In addition, one of the first Regional Centre of Excellence will be set up in Hyderabad. These CoEs will complement the work done by private sector-led CoEs.
For instance, the AVGC-XR Centre of Excellence in Bengaluru, is set up by the Association of Bangalore Animation Industry (ABAI) in partnership with the Government of Karnataka. Krafton also launched its India incubation centre, Krafton India Gaming Incubator (KIGI), to provide mentorship for game development talent in India.
WinZO, in partnership with the Department for Promotion of Industry and Internal Trade, is launching a Global Center of Excellence to serve as a hub for gaming startups, developers, and entrepreneurs, focusing on skill development, innovation, and industry growth. The CoE will drive monetization strategies for Indian gaming assets, create world-class ‘Made in India’ IP and attract FDI.
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Additionally, it will provide mentorship, global networking opportunities, accelerator programs, and access to funding, helping startups scale and compete internationally while fostering a sustainable ecosystem for India’s interactive entertainment industry.
This meaningful amalgam of initiatives aiming to uplift the online gaming-driven growth of the AVGC-XR sector will have long-term benefits, whether in terms of tech innovation, IP creation, export of Indian culture, and economic growth and job creation. These future gaming and technological innovations will be powered by its highly-skilled workforce, who have been at the forefront of placing India’s Internet industries on the global map for decades now. To further unlock India’s next wave of gaming prowess, enhancing their already impressive skill sets is the call of the hour.
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