Content economy gets a push in Budget 2026, industry says creator labs will improve talent supply

With India’s animation, visual effects, gaming, and comics (AVGC) sector projected to require around 2 million professionals by 2030, the government’s push to integrate AVGC education into schools and colleges could help address looming talent gaps, industry executives said.

Gaming and animation startup founders from the sector — which is also called the `Orange Economy’ — told ET that early exposure at the school and college level could familiarise students with industry tools, workflows, and creative thinking. This in turn will improve their employability and ease hiring pressures as companies scale.

In her Budget 2026 speech on Sunday, finance minister Nirmala Sitharaman proposed extending support to the Indian Institute of Creative Technologies (IICT), Mumbai, to establish AVGC creator labs in 15,000 secondary schools and 500 colleges across the country.


The IICT was launched by the government in July 2025 as an institution designed to support the AVGC sector.

“One of the pressing problems for the growth of the industry has been the availability of trained talent, whether in game design or other functional aspects of gaming,” said Manish Agarwal, board member, GDAI. “These content creator labs can become a catalyst for the growth of the gaming ecosystem.”

Agarwal is also the former chief executive of gaming and interactive media firm Nazara Technologies.

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Recognition at last

“This shift signals a move from informal discussions around creators to formal policy recognition,” said Parth Chadha, cofounder and chief executive of social gaming startup Stan. “It validates the creator-led economy as a meaningful contributor to the country’s GDP.”

Industry body GDAI (Game Developer Association of India) said the initiative addresses one of the most persistent challenges facing the gaming industry — the availability of trained talent across creative and technical roles. “These labs can become a catalyst for the growth of the entire gaming ecosystem,” said Agarwal.

Industry executives also noted that while India has become a global outsourcing hub for animation and VFX services, domestic game development and original intellectual property creation have lagged due to limited early-stage exposure and a redundant training curriculum.

But while the sector welcomed the move, it also flagged execution challenges around faculty availability and training, and added that it takes about 1-2 years of formal training to be skilled.

"The challenge is that they are talking very big numbers like two million jobs, and creator labs in 15,000 schools and 500 colleges. For all of that, we need teachers. Trainers and teachers are a big concern," said Jay Dutta, founder of the DesignUp Conference, a platform for product creators, designers, and UX researchers. Dutta has also been head of product design at MakeMyTrip, Adobe, Flipkart, and Udaan.

He added that industry's expectation is rising. ``They want people who can do almost everything — from UX, designing, ideation — all of it. So, the rethink has to be along a multidisciplinary route. The old idea that you graduate as a graphic designer and then do only that is no longer a reality.

Srinivas Sribhakta, a member of the Association of Bangalore Animation Industry (ABAI), said that with attention spans shrinking, most digital consumption is happening in the 30-60 second window.

“This has made micro-content one of the most powerful tools for engagement. Content creator labs can help students learn how to craft impactful short-form content across platforms, whether for education, health, social messaging, or storytelling."

The government’s latest initiative builds on themes addressed in the Economic Survey 2025-26, which argued that creative sectors such as culture, media, entertainment, and intellectual property can be significant drivers of employment, urban services, and tourism.