India's AVGC industry faces a 2.3 mn talent gap

The AVGC sector in India employs around 2.6 lakh individuals and is expected to create 23 lakh direct jobs by 2032, as per the FX & Beyond : Shaping India’s AVGC Landscape report.

However, there is a significant gap between the skills of job seekers and the requirements of employers. Despite high unemployment rates, employers struggle to find candidates with the right skills, indicating a need for better alignment between training programs and industry needs.

The primary challenge is to train large numbers of people across the country, not just the top-tier talent. The goal is to improve the employability of the masses, particularly those from smaller towns and cities, by providing relevant and accessible training, as per the report.

"To build a world-class storytelling industry in India, we must invest selectively and strategically, focusing on upskilling and providing access to the right technology and programs. By establishing Regional Centres of Excellence in Telangana, Guwahati, Karnataka, Delhi, Jharkhand, Kerala, and more, and creating new ones in Rajasthan, Madhya Pradesh, and Haryana, we can create a one-stop destination for nurturing creativity and innovation," said Ashish Kulkarni, Member of AVGC Taskforce, Founder, Punaryug Art Vision.

The Skill India initiative aims to train 20 Lakh professionals in the AVGC sector by the next decade. Additionally, the M&E Skills Council offers specialised training programmes to the AVGC sector annually, aiming to develop skills among these professionals under the National Skill Development Corporation, the report highlights.

By aligning curriculum with industry needs and offering practical training opportunities such as campus placements, apprenticeship programmes, and internships with monetary benefits —initiatives supported by the Union Budget 2024 — graduates can become more employable. Also, cultural awareness is important for understanding diverse cultural contexts and creating content that resonates globally. Networking skills help build a strong network within the industry for opportunities and collaborations. Marketing knowledge is crucial for promoting content effectively. In the AVGC sector, possessing a blend of business and marketing skills is essential for success.

Global perspective

Japan has specialised institutions (Tokyo University of the Arts, Kyoto Seika University) focusing on animation, manga, and gaming. Government scholarships for AVGC students Partnerships with leading studios such as Studio Ghibli and Nintendo provide students with exceptional opportunities to work on high-profile projects and gain industry experience.

USA has comprehensive AVGC programmes at universities like USC, SCAD and vocational schools like Full Sail University, Gnomon School of Visual Effects. Gnomon School of Visual Effects specialises in Animation and VFX while others like California Institute of the Arts (Cal Arts) are known for Character Animation, Experimental Animation.

The University of Southern California (USC) offers a well-regarded Interactive Media & Games Division. The Savannah College of Art and Design (SCAD) provides extensive programmes in animation and game design. All universities are aligned with Internships and co-ops with leading companies like Pixar, Disney, Electronic Arts.

To bridge the gap between India's growing AVGC industry and the global standards set by countries like Japan and the USA, a comprehensive 360-degree approach to skilling and upskilling is essential.

360 degree approach to skilling and upskilling

Currently, there are 260,000 AVGC professionals scattered across India, primarily clustered in about 11-12 cities. The hub-and-spoke model, extending to tier 2 and tier 3 cities, is a positive sign, enhancing connectivity and proximity, as per the report.

Startup hubs in smaller cities are emerging as powerful delivery systems, expected to evolve significantly in the next few years.

The state boards of schools, CBSE, ICSE, and higher education institutions have established a strong foundation, with over 160 universities offering relevant courses. While gaming and XR remain relatively unknown territories, there is a focus on upgrading skills in the middle of the pyramid, promoting upward mobility. As this sector becomes more formalised, we can expect substantial growth and development.  Ashish Kulkarni Member of AVGC Taskforce, Founder, Punaryug Art Vision

Integrating Creative Arts, Science and Technology to build a more holistic curriculum could boost the AVGC sector in India, creating numerous job opportunities and contributing to the economy. It also aligns with the global trend of integrating STEM (Science, Technology, Engineering, and Mathematics) with the arts, often referred to as STEAM, to foster a more well-rounded education. Integrating math and science with creative arts in STEAM enhances problem-solving and product design skills. This integration could be introduced as early as K-12 to foster creativity and innovation from a young age.

To capitalize on the growing demand for AVGC professionals and foster a vibrant ecosystem, India must prioritize the integration of creative arts, science, and technology into its educational programs. One Indian state seems to have the upper hand here.

Karnataka leads the way

Karnataka aims to serve as the epicenter for innovation, research and development in the gaming sector. It will house state-of-the-art facilities such as high-performance computing clusters, simulation labs and testing zones to support all aspects of game development from concept to deployment.

The largest CoE in the AVGC sector is in Bengaluru, Karnataka. It features advanced post-production infrastructure, specialised training programs, and strong industry collaborations. This facility supports startups and aims to drive innovation in the AVGC industry.

In Maharashtra, an AVGC policy for the state is proposed and awaiting cabinet approval. Maharashtra’s IT & ITES Policy 2023 supports the AVGC sector with fiscal and non-fiscal incentives with key highlights being Capital subsidy support for Anchor units (first three with Rs 50 crores investment and 50 employees) and new AVGC units with at least 10 employees, 25% reimbursement for skill development courses, Financial support of Rs 20 lakhs to host annual events/competitions, Rs 2.5 Lakhs recruitment assistance for employing 50 local students in business incubation labs within two years.

The AVGC Policy 2024-2029 is planned to position Kerala as a prime destination for AVGC-XR content creation, attracting international studios and investments. It targets 50K job opportunity by 2029 and support for at least 250 establishments.

Telangana introduced a dedicated AVGC policy, known as the IMAGE (Innovation in Multimedia, Animation, Gaming and Entertainment) Policy in 2016. Training & placement through Telangana Academy for Skill and Knowledge (TASK) IMAGE CoE, an initiative by STPI, MietY, and the Government of Telangana, fosters innovation in Gaming, Animation, VFX, Computer Vision, and AI in Hyderabad Telangana State Government to establish the Telangana Skill University – School of AVGC in collaboration with Telangana VFX, Animation and Gaming Association (TVAGA).

The state government is investing Rs 1,200 crore to create a state-of-the-art tower with 1.6 million sq. ft. of Grade-A space, facilitating over 30,000 workers.