India Launches AVGC-XR Institute to Boost Creative Economy
Mumbai: India launched the Indian Institute of Creative Technology (IICT), a National Centre of Excellence for Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR), partnering with global firms like Google, NVIDIA, and JioStar to train talent for a $3 billion industry projected to reach $26 billion by 2030. Announced by Union Minister for Information and Broadcasting, Ashwini Vaishnaw, at the World Audio Visual and Entertainment Summit (WAVES) 2025, the institute aims to skill creators for animated films, video games, and virtual reality, fueling India’s digital economy.
“I thank all the industry partners and their top management with whom I have spoken to, for expressing their willingness to partner with us for this initiative. They will help us build this institution and help us sustain long-term growth. I hope the IICT grows into a large educational infrastructure for the AVGC-XR sector. We will be following the same template that we have created for the IITs and IIMs in our country, to make it into a world-class institution,” Vaishnaw said here today.
The AVGC-XR sector involves crafting animated characters, cinematic effects, mobile games, graphic stories, and immersive experiences, like RRR’s visual spectacles or virtual reality labs for education. With 940 million internet users and 450 million gamers, India’s AVGC-XR sector employs 260,000 people and could generate 2.3 million jobs by 2032. Supported by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII), the Indian Institute of Creative Technology will address skilling gaps, as 70% of animation work is outsourced, per the FICCI-EY Media and Entertainment Report 2024.
The Indian Institute of Creative Technology, temporarily based at the National Film Development Corporation in Mumbai, offers seven courses in animation, visual effects, game design, comics, and extended reality, with facilities including gaming labs, virtual production setups, and smart classrooms. Funded by a ₹400 crore allocation from the central government and supported by land from the Maharashtra government, it plans to establish a 10-acre campus in Mumbai’s Film City and regional centres, adopting an academic and governance model inspired by Indian Institutes of Technology and Indian Institutes of Management. Partners like Microsoft, Adobe, and YouTube signed Letters of Intent for curricula, internships, and jobs. Vaishnaw stated, “IICT will serve as a catalyst for the entertainment industry, facilitating its global expansion.”
India’s AVGC-XR market, valued at $3 billion in 2023, is expected to grow at a 30% annual rate to $26 billion by 2030, per industry estimates aligned with FICCI-EY 2024. Animation and visual effects ($1.3 billion) will reach $2.2 billion by 2026, and gaming ($2.62 billion) will hit $4.6 billion, per CII-Grant Thornton (2024). India aims for a 5% ($40 billion) share of the global market by 2025, per government data, though the global market size is unclear. Hundreds of studios, with an estimated 600–700 in Mumbai and 500 in Bengaluru, drive this growth, though precise counts are uncertain due to untracked small firms, per FICCI-EY. The sector’s 260,000 jobs could expand to 2.3 million, with 160,000 added annually, while the government hopes for 500,000 IICT-driven jobs by 2030.
Data gaps pose challenges. No centralised database tracks studio output, such as projects or revenue or employment by role, with informal workers uncounted. This hampers policies for skilling game designers or supporting small studios, worsened by fragmented governance across ministries. The Indian Institute of Creative Technology could launch a research wing to collect data, enabling targeted interventions, such as prioritising the $4.6 billion gaming market.
States like Karnataka and Madhya Pradesh, with AVGC-XR policies, aim for 20,000–50,000 jobs each by 2029. Karnataka’s 300 studios employ 15,000. Cultural exports like Raji: An Ancient Epic and Amar Chitra Katha comics bolster India’s soft power, as business magnate Mukesh Ambani noted at WAVES 2025, projecting a $100 billion media industry. Globally, India’s role in films like The Lion King highlights outsourcing strength, but limited original intellectual property remains a challenge, per Vaishnaw.
The Indian Institute of Creative Technology aligns with the government’s vision for global media leadership, leveraging 40 million creators. By crafting digital realms, it aims to rival India’s $194 billion IT sector, but funding, skilling, and intellectual property challenges persist. Success depends on equipping youth to meet global demand, ensuring economic and cultural impact.
– global bihari bureau
