The Karnataka government has proposed an investment of Rs 150 crore towards the revised Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) policy for the period 2024-2029. Chief Minister Siddaramaiah announced this during his budget speech on February 16.
The policy, initially announced in November and officially launched in January, aims to create 30,000 jobs in the AVGC sector by 2029, positioning Karnataka as a global leader in this rapidly growing field.
Additionally, the government intends to establish a talent pool by transforming the state into a center of excellence for AVGC-related skills. It also targets that exports constitute at least 80 percent of the sector’s total revenue.
Dedicated fund for startups
In further support of the AVGC sector, the Karnataka Information Technology Venture Capital Fund (KITVEN), backed by the state government, has introduced a dedicated fund with a corpus of Rs 20 crore. This fund will invest between Rs 0.5 crore and Rs 2 crore in early-stage startups.
Various financial support measures are also part of the policy, including reimbursement for skill development and job creation, covering marketing, infrastructure, and compliance costs for early-stage startups, and grants for animation film production, series, VR/AR/VFX projects, and game development.
The state government’s plans include developing an AVGC-XR Park as a Special Economic Zone, establishing a Center of Excellence for Gaming, introducing Technology Business Incubators (TBIs) focused on the AVGC-XR sector, expanding the existing Center of Excellence for the AVGC sector, and upgrading Digital Art Centers to digitize fine art colleges across Karnataka.
This policy initiative coincides with similar efforts by neighboring states such as Kerala and Tamil Nadu, all aiming to boost the AVGC industry. India’s AVGC market is projected to grow to $26 billion by FY30, a significant increase from the $3 billion recorded in FY21
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