Content Push: Cabinet Approves Setting Up Of National Centre Of Excellence For AVGC-XR

The union cabinet has approved the establishment of a National Centre of Excellence (NCoE) for animation, visual effects, gaming, comics, and extended reality (AVGC-XR) with an eye on creating IPs for domestic consumption and global outreach.

In a statement, the government said that the NCoE will be set up as a non-profit company, with the Federation of Indian Chambers of Commerce & Industry (FICCI) and the Confederation of Indian Industry (CII) representing the industry bodies as partners along with the Indian government.

The NCoE will be set up in Mumbai and will offer specialised training and learning programmes to equip amateurs as well as professionals with the latest skill sets in cutting-edge AVGC-XR technologies. It will also foster research and development and bring together experts from various fields like computer science, engineering, design and art that can lead to major breakthroughs in the field of AVGC-XR, the statement said.

It will also function as an incubation centre and accelerator by providing resources for nurturing startups and early-stage companies in the AVGC-XR field. 

“… (It) will also extensively focus on creation of India’s IP for both domestic consumption and global outreach, overall leading to creation of content based on India’s rich historical and cultural heritage…The NCoE for AVGC-XR will also position India as a content hub for providing state-of-the-art content thereby enhancing India’s soft power globally and attracting foreign investment into the media and entertainment sector,” the statement added.

It is pertinent to note that in her budget speech for the financial year 2022-23 (FY23), finance minister Nirmala Sitharaman had announced the formation of an AVGC Task Force.

The task force was established in April 2022 and submitted its report in December 2022. It proposed the formation of a national AVGC Mission with a dedicated budget to promote the sector.

Further, the panel also suggested establishing incubators and accelerators for early stage AVGC startups across the country. 

Following this, several state governments rolled out policies and funds for the development of the AVGC ecosystem. For instance, In July, the Rajasthan government launched the AVGC-XR policy to incentivise innovation and create around 50,000 jobs in the creative and technology sectors over the next five years.

The Karnataka government launched INR 20 Cr AVGC focused VC fund in January, while the Kerala government also proposed to formulate a comprehensive policy for AVGC-XR with an eye on having at least 10% share in the total export of AVGC-XR-based products and services from the country.

In November 2023, the Karnataka government launched a similar AVGC-XR policy 3.0.

Earlier this year, Prime Minister Narendra Modi also voiced his opinions on India leading the gaming industry in his Independence Day speech. At the time, he said that he wanted the country’s youth to “lead the gaming industry” and that “Indian games must reach the world.” 

At the heart of this push is the big opportunity provided by the AVGC sector. As per the I&B ministry, the AVGC sector is a $350 Bn opportunity and India has only 1% share in it. The government believes there is potential to increase India’s share in this sector to 5% by 2025.