Budget 2026 puts AVGC in spotlight; IICT and GDAI hail skilling focused vision

The Union Budget 2026–27 has delivered a significant boost to India’s Animation, Visual Effects, Gaming and Comics (AVGC) sector, with Finance Minister Nirmala Sitharaman underscoring its growing strategic importance to employment generation, creative exports and the country’s expanding “Orange Economy.”

Presenting the Budget in the Lok Sabha on Sunday, Sitharaman positioned the AVGC industry as a key driver of future-ready jobs and cultural capital, noting its rapid expansion amid the global digital content boom. Industry stakeholders, including the Indian Institute of Creative Technologies (IICT) and the Game Developer Association of India (GDAI), have welcomed the government’s targeted focus on skilling and ecosystem development.

Highlighting the scale of opportunity, the Finance Minister stated that India’s AVGC sector is projected to require nearly two million professionals by 2030, prompting the government to roll out structured interventions to build a robust talent pipeline. Central to this vision is enhanced support for the Indian Institute of Creative Technologies (IICT), Mumbai, which has been tasked with spearheading a nationwide AVGC skilling initiative.

Under the proposed plan, IICT will lead the establishment of AVGC Content Creator Labs across 15,000 secondary schools and 500 colleges, aimed at nurturing grassroots talent and equipping students with creative and technical skills across animation, visual effects, gaming, and storytelling disciplines.

“These labs will play a pivotal role in meeting the workforce needs of our burgeoning creative industries while enabling India to export IP and creative services across the world,” Sitharaman said, emphasising the government’s focus on combining creativity with technology-led skill development.

AVGC Integrated into India’s ‘Orange Economy’

The Budget marks a notable shift in policy framing, formally recognising AVGC as part of India’s Orange Economy — a cluster of creative and cultural industries spanning digital content, design, media, fashion and performing arts. By integrating AVGC into this broader economic narrative, the government has signalled its intent to transform creative talent into sustainable employment and export-driven growth.

Dr. Vishwas Deoskar, CEO, IICT said, "Aligned with the highest global benchmarks of the times ahead, and poised to illuminate India’s distinctive contribution to future-ready creative and technological standards, the Finance Minister’s announcement to establish AVGC content creator labs across 15,000 secondary schools and 500 colleges marks a landmark step in shaping India’s creative economy. By introducing students early to animation, visual effects, gaming and comics, this initiative will democratise access to cutting-edge creative technologies, nurture grassroots talent, and significantly strengthen India’s global leadership in AVGC and digital storytelling."

Deoskar said, "At IICT, we are deeply committed to building a robust, inclusive, and industry-ready creative ecosystem. We view this initiative as a powerful investment in skills, jobs, and India’s cultural and creative capital, and remain dedicated to translating this vision into sustainable, high-impact outcomes that reflect India’s commitment to global excellence."

Welcoming the announcement, Rajan Navani, Chairman of JetSynthesys and Co-Chairman of the CII National Committee on Media & Entertainment, said the Budget reflects growing recognition of youth-driven creative capabilities.

“India’s pioneering operating platform in the Orange Economy is thrilled to hear the government recognise the economic value of youth empowered creation capabilities and support their growth as India moves towards Viksit Bharat,” Navani said.

As a member of the Board of Directors at IICT, Navani further welcomed the scale of the proposed initiative. “The additional government support to create 15,000 content labs in secondary schools and 500 colleges will not only expand the size of the talent pool but also help raise world-class quality standards for Bharat’s creative industries,” he added.

GDAI Sees Long-Term Boost for Gaming and Interactive Media

The Game Developer Association of India (GDAI) also hailed the Budget’s emphasis on early-stage skilling as a landmark step for the gaming and interactive media ecosystem.

“The announcement of AVGC content creator labs in schools and colleges is a landmark step toward building India’s next generation of game designers and developers,” said Manish Agarwal, Board Member, GDAI. “Over the past few years, GDAI has been closely engaging with government stakeholders to help shape a long-term talent pipeline that starts at the school level and extends through higher education and industry readiness.”

Agarwal added that the move is expected to significantly accelerate career opportunities across gaming, AVGC-XR and interactive media, sectors where India is increasingly emerging as a global talent hub.

Industry Seeks Clarity on Implementation

While the industry broadly welcomed the Budget’s direction, experts noted that execution details would be critical. Jay Sayta, Technology and Gaming Lawyer, said the focus on AVGC is encouraging but stressed the need for clarity on funding and timelines.

“Focus on boosting the AVGC sector in Budget 2026 is a welcome step; however, the fine print is awaited to see the exact monetary allocation and implementation timelines for the proposed 15,000 AVGC labs in secondary schools,” Sayta said.

Overall, the Budget’s AVGC push aligns with broader national priorities around digital skilling, services exports and high-value job creation for India’s young workforce. For institutions like IICT and industry bodies such as GDAI, the announcements mark a significant step toward building a structured, globally competitive creative economy anchored in education, innovation and cultural IP creation.