Karnataka unveils Rs 150 crore investment plan for AVGC-XR sector

Prepend to the content

In a bid to boost the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector, the Karnataka government has proposed a significant investment of Rs 150 crore towards its revised policy for the years 2024-2029. Chief Minister Siddaramaiah made this announcement during his budget speech on February 16, outlining the government’s ambitious plans for the growing industry.

Money Control reported that the AVGC-XR policy, initially announced in November and officially launched in January, aims to position Karnataka as a global leader in the field while creating substantial employment opportunities. The government targets the generation of 30,000 jobs within the sector by 2029, underscoring its commitment to fostering growth and innovation.

Among the key objectives of the policy is the creation of a robust talent pool by establishing Karnataka as a centre of excellence for AVGC-related skills. The government seeks to ensure that exports constitute at least 80 per cent of the sector’s total revenue, indicating its focus on enhancing international competitiveness.

To further bolster the AVGC-XR ecosystem, the Karnataka Information Technology Venture Capital Fund (KITVEN) has introduced a dedicated fund with a corpus of Rs 20 crore specifically for the AVGC sector. This fund will provide vital financial support to early-stage startups, with investments ranging from Rs 0.5 crore to Rs 2 crore.

In addition to financial assistance, the government has rolled out various support measures, including reimbursement for skill development and job creation, covering marketing, infrastructure, and compliance costs for startups, as well as grants for the production of animation films, series, VR/AR/VFX projects, and game development.

Furthermore, Karnataka plans to establish an AVGC-XR Park as a Special Economic Zone, set up a Centre of Excellence for Gaming, introduce Technology Business Incubators (TBIs) focused on the AVGC-XR sector, expand existing Centres of Excellence for the AVGC sector, and upgrade Digital Art Centres across the state.

This comprehensive policy initiative aligns with the broader trend across India, as several state governments, including those in neighbouring Kerala and Tamil Nadu, gear up to launch similar policies for the AVGC sector. Industry estimates project India’s AVGC market to grow significantly, reaching $26 billion by FY30, contributing to about 3 percent of the global market. Currently, the sector employs approximately 1.8 lakh professionals, with an estimated addition of 20 lakh jobs expected by 2030.

The post Karnataka unveils Rs 150 crore investment plan for AVGC-XR sector appeared first on G2G News.