PMF IAS Current Affairs
PMF IAS Current Affairs
  • Context (TH): India’s Animation, Visual Effects, Gaming and Comics, and Extended Reality (AVGC-XR) sector to become a $26 billion industry by 2030.

What is the AVGC Sector?

  • Animation, visual effects, gaming, and comics (AVGC) is an industry that includes animation, visual effects, gaming, and comics.
  • The AVGC sector in India has the potential to become the torch-bearer of “Create in India” and “Brand India.

data on Animation, Visual Effects, Gaming and Comics, and Extended Reality (AVGC-XR) sector

Status of the AVGC Sector in India

  • The sector is growing at 30-35% annually.
  • At present, India contributes about $2.5-3 billion out of the estimated $260-275 billion global AVGC market.
  • It employs about 2.6 lakh professionals; expected to create over 23 lakh jobs by 2032.
  • It has the potential to become a $26 billion industry (5% of the global market) by 2030.

Growth Drivers of the AVGC Sector

  • Growing OTT user base: Over-the-Top user base is expected to grow at a CAGR of 7% between 2021 and 2024 with a penetration of 45.8% in internet users.
  • Advent of New Technologies like Augmented Reality and Virtual Reality.
  • Growth of Smartphone Users: In 2021, the number of smartphone users in the world stood at 6.3 Bn and is expected to reach 7.5 Bn by 2026 (at a CAGR of 4% between 2021 and 2026).
  • Wide spectrum of applications: Global animation and VFX in advertisement is projected to grow at a CAGR of 10.9%. Gaming is growing at a CAGR of 12%, with Gamers demanding high-quality productions with engaging VFX and realistic animation.
  • Growing 5G Presence: By 2026, 5G mobile subscriptions worldwide are forecast to exceed 3.5 Bn, led by Asia-Pacific, North America, and Europe. This is expected to bring a telecom revolution.
  • Increased R&D Investments: E.g. EA Sports spends up to 25% of its total expenditure on R&D with the proportion of spend increasing every year.
  • Surging Popularity of Comic Events, such as Comic-Con, have gained popularity across world providing fans the opportunity to interact with favourite content creators, receive sneak peeks, etc.

Challenges faced by the AVGC Sector

  • Non-availability of data such as employment, industry size, education intuitions, etc. for the AVGC sector, makes decision-making tougher for entities.
  • Absence of adequate training infrastructure, deterioration in the quality of training being delivered to students, impacting the quality of output and human resources for the AVGC industry.
  • Skill Gap: The AVGC sector in India will require over 20 lakh skilled professionals by 2024. However, the current talent pool is only about 4 lakhs.
  • Legal uncertainty: E.g. Karnataka High Court struck down substantial provisions of the Karnataka Police (Amendment) Act, 2021, which prohibited online gambling and skill-based gaming platforms.
  • Lack of a dedicated fund for the sector and ambiguities in GST laws on skill-based games hinders its growth.
  • There is no apex institute in India for the AVGC sector, unlike other sectors such as engineering, design, management, packaging, etc.
  • No national-level policy level framework exists for the AVGC-XR Sector.
  • Less focus on Research Development.
  • Lack of original Indian intellectual property as most work in this sector is outsourced.

Way Forward

  • Model Intellectual Property Licensing Agreements (IPLAs) may be developed by the AVGC promotion nodal agency.
  • Collective licensing agreements should be promoted among the existing players to create individual intellectual property and prevent IP rights infringements.
  • Indian AVGC companies should initiate conversations with Global AVGC companies to offer their servers for small Indian developers to create their own games.
  • A platform for pro bono legal and technical consultation on IP protection for developers and designers, like the Patent Facilitation Program under the Department of Science & Technology may be established in coordination with the industry-led incubators and accelerators.
Sharing is Caring !!

Newsletter Updates

Subscribe to our newsletter and never miss an important update!

Assured Discounts on our New Products!

Leave a Reply

Your email address will not be published. Required fields are marked *


Never miss an important update!