AVGC Task Force Submits Report; Calls For A Framework To Oversee Online Skill Gaming

The Animation, Visual Effects, Gaming and Comics (AVGC) Promotion Task Force has recommended sweeping changes to develop a roadmap for ramping up the burgeoning space in the country. 

In a report submitted to the Ministry of Information and Broadcasting (MIB), the task force has proposed the formation of a national AVGC Mission with a dedicated budget outlay to promote the sector. 

The panel has also suggested establishing incubators and accelerators for early-stage AVGC startups across the country. The task force also called for instituting reforms such as tax rebates, incentivising foreign direct investment (FDI) and other institutional support for building labs and spurring research and development (R&D) in the domain.

It has called for roping in various institutes of eminence in the country to boost the number of AVGC R&D labs and called for development of public-private partnership (PPP) models or co-innovation models for research into new technologies.

Another major takeaway of the report is that it has called for classification of online games and proposed the formulation of a national framework to regulate the online skill gaming space.

“It is proposed to formulate a national framework for online skill gaming that protects interests of the users at large and ensures structured growth of the industry. For various classification of games such as, casual games, real money games and esports, relevant regulatory and market development support may be provided by the Union Government,” said the report. 

In essence, the recommendations pertain to these key areas:

• Building access to markets and developing the AVGC-XR space
• Capacity building of professionals, promote skilling and mentor startups
• Increasing access to technology and creating financial viability
• Promoting high-quality content and promote awareness
• Building diversity, equity and inclusion

Called ‘Realising AVGC-XR Sector Potential in India’, the report is the handiwork of the AVGC Task Force, which was constituted under the chairmanship of MIB Secretary Apurva Chandra. 

The panel also comprised secretaries from ministries such as the Ministry of Skill Development and Entrepreneurship (MSDE), Ministry of Education, Ministry of Electronics and Information Technology (MeitY) and the Department for Promotion of Industry and Internal Trade (DPIIT). 

The task force also included officials from state government and industry bodies such as FICCI and CII. 

The report has also called for promotion of subscription-based pricing models for startups, and leveraging the Start Up India scheme to provide technical, financial and market access assistance for AVGC entrepreneurs. 

The panel has called for establishing special incentives for women entrepreneurs in the AVGC sector. It has also suggested targeting youth in Tier-II, III towns and villages for skilling and industry outreach.

Among other things, the task force has also called on the government to evaluate a production-linked incentive (PLI) scheme to incentivise AVGC hardware manufacturers and enhance ease of doing business in the sector.

The task force has also underlined the creation of a ‘Create in India’ campaign to focus on global content creation in the country to make India a ‘global hub’ for the AVGC sector.

The report has also called for leveraging the national education policy (NEP) to raise awareness about AVGC as a career choice.

“Launch AVGC focused UG/ PG (undergraduate/ postgraduate) courses with standard curriculum and globally recognised degrees.… Enhance Industry participation to ensure employment opportunities and absorption for students from non-metro cities and NE (North-Eastern) states,” said a press statement. 

The task force was established in April this year after being announced by Finance Minister Nirmala Sitharaman in her Budget speech in April, 2022. The task force on AVGC was constituted to identify interventions to build domestic capacity for serving local markets and for the global demand.

As a result, four sub-task forces were set up to devise policies in areas namely policy, education, skilling and gaming. 

The sector has seen tremendous rise in the past decade. Most Hollywood studios outsource their VFX and animation requirements to India, which, in turn, has built a burgeoning AVGC market in the country. With the rise of online gaming, the industry has received further boost. 

As per a 2021 report, the global AVGC market is estimated to be worth around $800 Bn. Of this, India has the potential to corner around 5% of the market by 2025.