India's Animation and VFX Industry Set for Significant Growth by 2026: Report

A CII GT report forecasts India's Animation and VFX segment to rise from USD 1.3 billion in 2023 to USD 2.2 billion by 2026, boosting its share in the media and entertainment industry. The AVGC-XR sector is poised for further expansion, expecting to create over 160,000 jobs annually.

India's Animation and VFX segment is projected to grow from USD 1.3 billion in 2023 to USD 2.2 billion by 2026, according to a report released by the CII GT on Wednesday. This growth will raise the segment's share in the media and entertainment (M&E) industry from 5% to 6%, the report detailed. The report was unveiled by Sanjay Jaju, Information and Broadcasting Secretary.

Currently, the AVGC-XR sector constitutes approximately 20% of India's M&E industry and is poised for further expansion, the report indicated. AVGC-XR stands for Animation, Visual Effects, Gaming, Comics, and Extended Reality. The report also forecasted that the Indian online gaming industry would reach USD 4.6 billion by 2026, its contribution to the M&E sector swelling from 10% to 13%. Currently, the online gaming industry is valued at USD 2.62 billion.

The report also highlighted the sector's potential as a major employment driver, predicting the creation of over 160,000 new jobs annually, culminating in a total of 20 lakh new jobs by 2030. Swift implementation of the National Draft Policy Framework for AVGC-XR was urged to accelerate growth. The report emphasizes that strengthening the AVGC-XR sector could pave the way for a more vibrant creative economy, with the sector expected to grow 2.2 times over the next four years and increase its global market share from 0.7% to 1.5%.

Additionally, the CII GT report advocates for enhanced Intellectual Property Rights, clear regulatory definitions within the gaming industry, and better support for AVGC-XR entrepreneurs through Start-Up India and investments in the National Centre of Excellence to foster innovation and global competitiveness.

(With inputs from agencies.)