Karnataka set to lead as gaming market seen doubling in 5 years, says Priyank Kharge

India’s gaming market is expected to grow from $3 billion in 2023 to $6.26 billion by 2028, Karnataka’s IT/BT Minister Priyank Kharge has said, following the release of the state’s animation, visual effects, gaming and comics (AVGC) policy.

Karnataka will be taking big strides in the animation and gaming sectors, the minister said in a post on social media platform X. “We are bracing well in terms of skills and incubations for this industry.”

India's animation and VFX industry was valued at around Rs 107 billion in 2022 and is growing at a rapid rate, to reach an estimated market value of Rs 190 billion by 2025, he said.


The state’s new AVGC - XR Policy 3.0 (2023-28), unveiled on Wednesday, aims to add 30,000 high-quality jobs in five years. It seeks to foster growth of animation, visual effects, gaming, comics and extended reality sectors, and sees the sector earning four-fifths of its revenue from exports.

Over the next five years, the government will set up an AVGC Venture Fund (Kitven AVGC Fund-4) to lend financial support to the AVGC firms. The policy moots a tiered incentive system based on contributions to sustainability and innovation.

Kharge said Karnataka was the only state to launch its third edition of the AVGC policy. “The AVGC-XR Policy is a landmark initiative to establish Karnataka as a powerhouse in the fields of animation, visual effects, gaming, and comics, further enhancing our state's reputation as a hub of technological innovation and economic development.”