Apart from the introduction of India ‘s digital currency, there was more for the digital world in the 2022 Budget speech. Modi government is focusing on giving direction to youth’s creativity in digital space. The budget became remarkable for its push towards Animation, VFX, Gaming and Comics sector.
Special task force for AVCG
In her 2022 Budget speech, Finance Minister Nirmala Sitharaman has announced the Modi government’s decision to set up a special task force for the promotion of the animation, visual effects, gaming, and comics (AVGC) industry.
“An AVGC promotion task force with all stakeholders will be set up to recommend ways to realize this and build domestic capacity for serving our markets and the global demand,”, said Sitharaman. The task force will provide a unique platform where all stakeholders will recommend ways to employ youth and build domestic capacity for serving Indian markets and the global demand.
The Finance Minister pointed out that the taskforce will provide huge opportunities for young professionals. She also added that the industry will be crucial in creating new jobs in the country. According to Deloitte projections, this industry can generate around 20 lakh jobs.
A remarkable shift
The move comes off as a huge departure, considering the fact that most of the governments before 2014 were technology sceptics. Experts believe that the announcement will result in youngsters flooding this industry.
After the Internet became readily available to every Indian (thanks to Reliance Jio and the Modi government’s push towards Digital India) AVCG sector has flourished to even tier-3 cities.
Gaming sector and its potential
Currently, the Indian gaming sector is generating revenue worth $1.5 billion. In 2025, total revenue is expected to be worth $5billion. Varying estimates suggest that currently, India has 1, 50,000 professional gamers. These gamers bring in more than 17 million viewers’ with them.
India’s gaming sector is witnessing bureaucratic problems in its own way. The tax structure is complicated as the government is still unable to demarcate between skillset and gamble. Currently, games coming under ‘game of skills’ are charged 18 percent tax, while those under ‘game of chance’ are charged 28 percent tax, which is equivalent to a tax on casinos. Moreover, there are controversies around the method by which GST is collected from platforms.
Animation and VFX will be game-changers
Currently, animation and VFX are aligned to the media and entertainment industry. The industry is being projected to grow at nine percent CAGR to $55-70 by 2030. This provides a wonderful opportunity for AV of AVCG to showcase their skills to a wider base audience.
Even on its own, India’s animation and VFX industry has witnessed a phenomenal rate of growth in the last decade. In 2011, its market size was worth only $25 billion. However, things took a remarkable shift and at the end of 2019, it was approaching $100 billion. In spite of being halted by China induced covid pandemic, the market size is expected to grow over $129 billion.
Indian comics will be resurrected
Similarly, the Comics sector also holds strong potential for the Indian economy. In the 80s and 90s, India was considered one of the top five countries that produced superhero comics. Some of these Golden age superheroes included Nagraj, Doga, Parmanu, Shaktimaan, Dhruv, Shakti, and many more. The entire millennial generation grew up reading and savouring them.
However, the comic book industry has been in a downward spiral in the post-millennial era. With the advent of cable TV, mobile phones, and most importantly the inability of Indian comic book publishers to reinvent themselves, the industry is slowly edging towards its end. Recent Budget push is expected to increase India’s contribution to the Comic book universe.
Read more: Indian Comic Industries was a booming industry till 2000. So, what led to its collapse?
Power in the 21st century will be held by those who have control over soft narratives. Indian digital space is rising to the occasion. Recently, various games and other digital tools have been helpful in propagating Indian philosophy. Moreover, children are also being introduced to Bhagwans through games like Smite.
Read more: Video Game Smite features Hindu Devi Devtas as indestructible superheroes
The blend of 5G, digital inclusivity and AVCG can prove to be a big game-changer for India. If directed properly, they will be able to provide employment to millions of youth from the comfort of their homes.
