Animation, Visual Effects, Gaming and Comics (AVGC) Sector in India

IN NEWS:

• The Animation, Visual Effects, Gaming and Comics (AVGC) Promotion Task Force report 'Realising AVGC-XR Sector Potential in India' has proposed a national AVGC-Extended Reality Mission with a budget outlay to be created for integrated promotion and growth of the sector.

ANIMATION, VISUAL EFFECTS, GAMING AND COMICS (AVGC):

• The global animation and visual effects market size was estimated at USD 168 billion in 2021 and is projected to grow to USD 290 Bn by 2024.

INDIA’S AVGC SECTOR:

• India is emerging as a primary destination for high-end, skill-based activities in the AVGC sector. Estimates expect the industry to be worth nearly USD 1.7 Billion by 2024.
• According to estimates by NITI Aayog, the animation and VFX sector in India is valued at USD 1.131 Bn.
• India is one of the top 5 markets in the world for mobile gaming.
• The comic book industry is a well-recognized part of Indian popular culture, having produced many familiar cultural icons like Tenali Raman, Suppandi and Akbar-Birbal.
• The Government of India has designated audio-visual services as one of the 12 Champion Service Sectors and announced key policy measures aimed at nurturing sustained growth.

WHY PROMOTE AVGC SECTOR IN INDIA:

• Tap the economic potential:
  • As per industry experts, the AVGC sector can witness a growth of 14-16% in the next decade and potentially command 20-25% of the Global market share by 2025.
  • Hence, it can be the next Information Technology and Business Process Management (IT-BPM) boom for India and play a fundamental role in India becoming a USD 100 billion Media & Entertainment industry by 2030.
• Investment and employment generation:
  • By 2030, the sector would need direct employment of at least 20-25 lakh people.
  • Also, a robust AVGC sector will attract foreign companies and content creators to co-produce and relocate to India, outsource work to Indian counterparts, and thereby generate employment in India.
• Promote Indian culture:
  • The sector has the potential to preserve and make Indian culture accessible to the world, benefit the tourism and allied industries and connect the Indian diaspora to India.
  • Eg: Indian epics such as the Ramayana and Mahabharata could be used as inspiration to develop online and video games.
  • Eg: The role played by Amar Chitra Katha in preserving Indian heritage and promoting iconic folktales through its comic books.
• Encourage innovation:
  • AVGC sector has the potential to produce powerful content and Intellectual Property. Thus, the sector can become a torch bearer of “Create in India” and “Brand India”.
• Improve classroom productivity:
  • Delivering high quality audio-visual, interactive content can effectively capture student attention and supplement the teacher’s efforts, thereby enriching the classroom experience.

CHALLENGES:

• Skill Gap:
  • The number of universities providing courses have been increasing, but we have very few recognizable colleges like NID, IITs. Also, most of the AVGC related programmes offered are academic and not tailored to be industry relevant.
• Absence of uniform academic standards:
  • Unlike other fields such as engineering and management, there is no apex institution to standardize the curriculum or function as a think-tank and provide overall guidance to the AVGC industry.
• Infrastructure constraints:
  • AVGC is a sector which witnesses fast paced technological upgradations. However, the high capital investments involved in adopting these technologies makes it unaffordable for most companies, especially startups.
• Lack of regulatory framework:
  • At present there is no national level policy framework for AVGC-XR Sector. This has been a hinderance in ensuring ease of doing business in the sector.
  • Eg: In the absence of a national regulator in the gaming ecosystem, many states have enacted prohibitory legislations, thereby creating regulatory uncertainty and negative perception of the gaming sector.
• Financial hurdles:
  • At present, there is no dedicated fund available for the promotion of the AVGC sector. Also, uncertainty regarding the GST on skill-based games has been highlighted by the industry as an obstacle for the growth of the sector in India.
• Cultural sensitiveness:
  • The content and historical characters associated with Indian culture are highly sensitive topics. Hence, their usage for commercial purposes by the AVCG sector may, at times, evoke strong reactions.  
• Less focus on Research Development:
  • There is a need to develop research related narrative for the AVGC-XR sector, so that dedicated focus can be given to it.
• Lack of authentic data for AVGC sector:
  • Non availability of data such as employment, industry size, education intuitions, etc. for AVGC sector, makes decision making tougher for entities.
• Lack of globally-popular Indian IPs:
  • AVGC sector has suffered a lack of original Indian intellectual property as most work in this sector is outsourced.

TASK FORCE RECOMMENDATIONS:

The main recommendations of the Task Force categorized broadly under 4 categories are as under:

1. Domestic Industry Development for Global Access:
   • Create a National AVGC-XR Mission for integrated promotion & growth of the AVGC sector.
   • Launch a ‘Create in India’ campaign with exclusive focus on content creation, In India, For India & For World.
   • Conduct an annual Gaming Expo
   • Institute an International AVGC Platform aimed at attracting foreign direct investment, co-production treaties and innovation in collaboration with international counterparts.
   • Establish a National Centre of Excellence (COE) and Regional Centres of Excellence (RCoEs) for the AVGC sector for skilling, education, industry development and research & innovation in the sector.
2. Developing Talent ecosystem to realize Demographic Dividends:
   • Leverage the New Education Policy for dedicated AVGC course content at school levels.
   • Launch AVGC focused UG/PG courses with standard curriculum and globally recognized degrees.
   • Standardize admission tests for AVGC related courses.
   • Enhance Industry participation to ensure employment opportunities and absorption for students from non-metro cities and NE states.
   • Establish AVGC Accelerators and Innovation hubs in academic institutions, on lines of Atal Tinkering Labs.
   • Sign Memorandum of Cooperation with other developed global AVGC markets: U.S., Japan, South Korea, Germany, for providing internships to Indian AVGC professionals.
3. Enhancing Technology & Financial Viability for Indian AVGC Industry:
   • Democratize AVGC technologies by promoting subscription-based pricing models for MSME, Start-Ups and institutions.
   • Evaluate PLI scheme to incentivize AVGC hardware manufacturers.
   • Enhanced Ease of Doing Business in AVGC sector i.e tax benefits, import duties, curbing piracy, etc.
   • Leverage Start-Up India to provide technical, financial and market access
   • Assistance to AVGC entrepreneurs, with special incentives for women entrepreneurs.
   • Indigenous technology development through incentive schemes and Intellectual Property creation
4. Raising India’s soft power through an Inclusive growth:
   • Establish a dedicated Production Fund for domestic content creation from across India to promote Indian culture & heritage globally.
   • Evaluate Reservation for high-quality indigenous content by broadcasters.
   • Target skilling and industry outreach for youth in Tier 2 & 3 towns and villages in India.
   • Promote local Children’s channels for raising awareness on rich culture and history of India among children and youth
   • Establish framework to ensure Child Rights Protection in the digital world.

PRACTICE QUESTION:

Q. The Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) sector has immense potential to contribute to India’s Exports and GDP growth. Discuss.