The Indian Government’s recent budget announcement for 2022-23 included the formation of an ‘Animation, Visual Effects, Gaming and Comics’ (AVGC) task force. This is aimed at bolstering domestic capacity to cater to the Indian market and meet global demand. The focus on the AVGC sector comes as a strategic move, considering its contribution to revenue and employment generation, and its potential role in the booming Metaverse space, which combines elements of social media, blockchain, Augmented Reality (AR), and Virtual Reality (VR).
The Prominent Role of the AVGC Sector
India’s AVGC sector holds a significant role given its potential to contribute to the world’s Metaverse – a network of 3D virtual worlds focused on social interaction. This digital setting encapsulates AR, VR, blockchain, and social media aspects, creating rich user interactions that mimic real-world experiences. The rise of the AVGC sector could also lead to the formalisation of game art education, fostering new opportunities for players and platforms.
Contribution to Revenue and Employment
The number of gamers in India escalated from roughly 250 million in the fiscal year 2018-19 to around 400 million by mid-2020. This surge positions India as the second largest online gaming hub globally, with China holding first place. Online casual gaming, which constitutes a considerable portion of total gaming revenue, is expected to expand at a Compound Annual Growth Rate (CAGR) of about 29% over the next four years, reaching revenues of Rs 169 billion by FY25.
Moreover, the AVGC sector has immense potential for job creation. Projections place the possibility of employment opportunities within this field anywhere between 70,000 to 1.2 lakh throughout the entire industry.
Prevailing Issues within the AVGC Industry
Despite the rapid growth of the AVGC sector, there is a significant lack of formalisation, notably evident in the absence of official gaming courses. This creates a deficit of proficient programmers, graphic designers, and esports managers.
Furthermore, the sector faces regulatory challenges, particularly with several state governments raising legal allegations against these companies for promoting gambling, a claim persistently denied by them. They argue that their offerings do not involve ‘games of chance,’ but instead centre on ‘games of skill.’
A Forward-Looking Perspective
Addressing these issues requires collaboration between Central and State authorities to bring about regulatory clarity. The task force should consider aspects such as capacity building and integration of these fields into education systems for future capabilities enhancement. It is crucial to discover ways to formalise education in this domain, fostering the growth of animators, designers, and people skilled in conceptualizing, coding, and creating games and virtual environments. By doing so, India will be better positioned to meet the growing local and global demand for AVGC products and services.