Challenges and Opportunities in India’s AVGC Sector: Industry Representatives Meet with Ministry Officials
India’s AVGC Sector Faces Challenges, Government Aims to Boost Growth
India’s animation, visual effects, gaming, and comic (AVGC) sector is facing challenges such as a lack of awareness, high entry barriers, and limited content availability, industry representatives revealed during a closed-door meeting with officials from the Ministry of Information and Broadcasting at a recent FICCI event in Mumbai.
The roundtable meeting, attended by I&B ministry officials Neerja Sekhar, Additional Secretary, and Sanjay Jaju, Secretary, highlighted the government’s focus on the $2.5-3 billion industry. The AVGC sector employs over 1.85 lakh professionals and is projected to employ around another 20 lakh individuals by 2030.
While the government unveiled a draft policy for the sector in 2022 to promote Indian talent, products, culture, and content globally, stakeholders pointed out various challenges impeding the industry’s growth.
One key issue raised was the need to incentivize global developers to set up studios in India. With the country’s gaming market witnessing significant growth, many international game companies are eyeing opportunities in India. However, stakeholders emphasized the importance of creating a conducive framework to attract global developers.
Another concern highlighted was the lack of projects for animation studios, particularly from Indian broadcasters. The industry is heavily dependent on broadcasting for revenue, but many studios are facing a shortage of work due to reduced content acquisition by broadcasters.
To address these challenges, industry members suggested initiatives such as incentivizing global developers, focusing on local content production, and enhancing awareness campaigns for students about careers in animation and VFX.
Additionally, the importance of creating intellectual property (IP) and selling it internationally was emphasized as a potential game-changer for the AVGC industry. Stakeholders stressed the need for incentives for software production in the AVGC sector and promoting the “Create in India” strategy to develop and sell IPs globally.
Overall, the government aims to stimulate demand for domestic content consumption while supporting the creation of Indian software and hardware products in the AVGC sector. With collaborative efforts between industry stakeholders and government officials, the AVGC sector in India is poised for growth and innovation in the coming years.