India's animation, visual effects, gaming, and extended reality (AVGC-XR) industry has evolved from a supporting role to becoming a central player in the digital landscape. With an animation market valued at $1.4 billion, a gaming sector growing at 23% annually despite tax challenges, and 590 million gamers across the country, India is now setting industry standards rather than following them, according to IT/BT Minister Priyank Kharge.
Speaking at Thursday's GAFX 2025 inauguration, Kharge highlighted that this year's expo is freely accessible to the public for the first time, creating valuable networking opportunities between young talent and established creators.
During the event, Kharge unveiled plans for Karnataka to develop the nation's first AVGC-XR Park, designed to establish the state as a global center for animation, visual effects, gaming, and comics.
"The park will be integrated within a broader technological ecosystem featuring multiple specialized centers, providing cutting-edge production studios, integration spaces for startups, international partnership opportunities, and research facilities to foster innovation in immersive digital content," he explained.
Looking toward the future, Karnataka plans to partner with more than 200 educational institutions and industry stakeholders to train at least 50,000 AVGC-XR professionals through specialized, standardized skill development initiatives.
Kharge emphasized Bengaluru's existing leadership in India's gaming industry, noting that Karnataka hosts the highest concentration of gaming startups nationwide. The state has consistently seen approximately three new companies launch annually over the past decade.
Karnataka currently supports five animation-focused institutes, three dedicated to digital effects, and twelve specializing in gaming education—representing a substantial portion of India's 129 AVGC training facilities. According to Kharge, the government targets a 50% improvement in operational efficiencies by 2029.
GAFX 2025 featured several notable highlights, including a collaboration between Zebu Animation and Tinkle, introduced by actor Rana Daggubati, which aims to animate India's beloved comic characters using sophisticated animation technology. Another major attraction was the Esports National Championship, featuring the Counter-Strike 2 grand finals contested by India's top four esports teams.
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