AVGC sector applauds govt nod for NCoE, projects $26 billion growth by 2030

The Modi government on Wednesday approved the establishment of a National Centre of Excellence (NCoE) for Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) in Mumbai as a not-for-profit company. This initiative has been praised by the AVGC industry, which further will attract foreign investments, boosting the sector.

The Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII), representing industry bodies, will collaborate with the government in setting up the proposed Institute of Immersive Creators (IIIC).

This initiative aims to position India as a content hub, providing state-of-the-art content to enhance India's global soft power and draw foreign investments into the media and entertainment sector. The center will be established in Mumbai as a Section 8 Company under the Companies Act, 2013.

Storyboard18 reported on September 6 that the Department for Promotion of Industry and Internal Trade (DPIIT) is expediting the FDI policy for online gaming, which will formalize 100 percent foreign direct investment (FDI) in the sector.

Telangana has been a frontrunner with its IMAGE (Innovation in Multimedia Animation Gaming and Entertainment) policy, and the IMAGE Tower, a hub for the AVGC industry, is a successful state initiative.

Shaik Khaja Vali, Chief Operating Officer of Telangana VFX, Animation and Gaming Association (TVAGA), commented, “This is a welcome move by the government. It will help build a strong ecosystem for the AVGC industry. The Central government should support states in growing this ecosystem. The establishment of the NCoE will not only create an academic foundation for beginners but also accelerate the growth of the AVGC industry across the country.”

Vali added, “This initiative will undoubtedly attract foreign investments and benefit numerous startups, animation and gaming studios, and the AVGC industry as a whole.”

AVGC industry experts expect overall revenues to surpass $26 billion by 2030, up from the current $3 billion, which accounts for 5% of the global market. The AVGC sector currently employs 260,000 people and is projected to create over 2.3 million jobs by 2032.

Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming applauded the government's decision and said, "The establishment of the National Centre of Excellence (NCoE) for AVGC-XR marks a milestone for India's entertainment industry. The NCoE will act as a beacon for both amateurs and professionals of the industry to learn and sharpen their craft. The NCoE will further strengthen the roots of this industry and help in creating skilled professionals by nurturing creativity through cutting edge technologies and expert mentorship. This will provide an impetus to the country’s AVGC - XR ecosystem and help solidify India as a powerhouse of this industry, globally."

Speaking about increase in foreign investments, Roby John, CEO and Co-Founder of SuperGaming, said, "The NCoE's role as an incubation hub will be a game-changer for startups, fostering innovation and supporting early-stage companies that could shape the next generation of gaming experiences. Just as IITs and NITs advanced engineering and technology, and IIMs boosted management, we believe the NCoE for AVGC-XR will similarly revolutionize India's gaming industry."

John further noted, "As gaming continues to blend entertainment and technology, we can expect a rise in both domestic and foreign investments, as the global industry views India as a content hub. With a focus on cutting-edge technology, along with government and industry support, significant FDI will flow into the gaming sector, further boosting India's global position in gaming."

Animesh Agarwal, also known as 8Bit Thug, Co-Founder of S8UL and 8Bit Creatives, said, "The establishment of the NCoE for AVGC-XR is truly commendable. It will provide young enthusiasts across the country access to the latest technology, valuable mentorship, and guidance to upskill and enter the industry."

Agarwal also added, "The NCoE will support and nurture the development of Made-in-India game titles for a global audience by leveraging India's rich history and cultural diversity. This will allow Indian content creators to thrive and make a lasting impact in the global gaming ecosystem."

The establishment of NCoE marks a significant step in the government's commitment to empowering India's AVGC sector. This will not only boost the ecosystem but will create millions of jobs leading to innovations and shaping the future of immersive content both locally and globally.