India’s Animation and VFX Industry to Grow to USD 2.2 Billion by 2026: Report
New Delhi [India], August 21: India’s Animation and VFX segment is expected to surge from USD 1.3 billion in 2023 to USD 2.2 billion by 2026, according to a report released by the Confederation of Indian Industry (CII) and GT. This growth will increase the segment’s share in the media and entertainment (M&E) industry from 5% to 6% during the same period.
The report, released by Information and Broadcasting Secretary Sanjay Jaju, highlights the current state and future potential of the AVGC-XR sector, which stands for Animation, Visual Effects, Gaming, Comics, and Extended Reality. Currently, this sector accounts for approximately 20% of India’s M&E industry and is poised for further expansion.
The Indian online gaming industry is also expected to grow significantly, reaching USD 4.6 billion by 2026, up from its current value of USD 2.62 billion. Its contribution to the M&E sector is projected to rise from 10% to 13%.
The report underscores the sector’s potential as a major employment driver, with over 160,000 new jobs expected to be created annually, totaling 20 lakh new jobs by 2030. It calls for the swift implementation of the National Draft Policy Framework for AVGC-XR to accelerate growth and foster a vibrant creative economy.
India’s AVGC sector had an overall market size of USD 2.3 billion in 2019, which was about 0.7% of the global market size. The sector is expected to grow 2.2 times over the next four years, constituting about 1.5% of the global AVGC market.
The report also advocates for enhanced Intellectual Property Rights to retain talent and content, clear regulatory definitions within the gaming industry, and support for AVGC-XR entrepreneurs through Start-Up India and strategic investments in the National Centre of Excellence to foster innovation and global competitiveness.
Doubts Revealed
Animation -: Animation is the process of creating moving images using drawings, computer graphics, or other methods. Think of your favorite cartoons or animated movies.
VFX -: VFX stands for Visual Effects. These are special effects created using computers to make scenes in movies or shows look more realistic or fantastical, like the magic in Harry Potter movies.
USD -: USD stands for United States Dollar, which is the currency used in the United States. It’s often used to compare values internationally.
AVGC-XR -: AVGC-XR stands for Animation, Visual Effects, Gaming, Comics, and Extended Reality. These are different parts of the media and entertainment industry that use technology to create fun and engaging content.
Extended Reality -: Extended Reality (XR) includes technologies like Virtual Reality (VR) and Augmented Reality (AR) that create immersive experiences, like VR games where you feel like you’re inside the game.
Media and Entertainment Industry -: This industry includes everything that entertains people, like movies, TV shows, video games, and music. It’s a big part of what people do for fun.
Online Gaming Industry -: This industry involves playing video games over the internet, either alone or with other people. Popular examples include games like PUBG and Fortnite.
Lakh -: Lakh is a term used in India to represent 100,000. So, 20 lakh means 2 million.
