Industry sees Budget 2026 AVGC push as talent pipeline India has been missing

New Delhi: India’s gaming and interactive entertainment industry has welcomed the Union Budget 2026–27’s focus on the orange economy, with stakeholders saying the proposed rollout of Animation, Visual Effects, Gaming and Comics (AVGC) content creator labs could help address a growing talent gap while supporting large-scale employment generation in one of the country’s fastest-expanding digital sectors.

Presenting her ninth consecutive Budget, Finance Minister Nirmala Sitharaman said the orange economy could generate around 20 lakh jobs, alongside the announcement to establish AVGC creator labs in 15,000 secondary schools and 500 colleges. Industry executives said the move signals long-term policy intent at a time when gaming, esports and digital content creation are seeing rising investment, institutional interest and creator participation.

Strengthening India's Orange Economy !

The Union Budget 2026–27 proposes support for the Indian Institute of Creative Technologies (IICT), Mumbai, to set up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges.

— FM @nsitharaman#ViksitBharatBudget… pic.twitter.com/28lvE5WyPC

— Ministry of Information and Broadcasting (@MIB_India) February 1, 2026

India’s gaming market is currently estimated at between $3.7 billion and over $4 billion, supported by a user base of 400–500 million gamers. The sector is projected to expand to $9–10 billion by 2029, driven by esports, live streaming, creator-led communities and the growth of original Indian gaming and pop culture intellectual property.

Industry leaders across esports, gaming studios, hardware manufacturers, incubators and investor groups said the announcement provides much-needed policy clarity and institutional backing for a sector that has grown rapidly but has often lacked structured skilling pathways.

Akshat Rathee, Co-founder and Managing Director of NODWIN Gaming, said the Budget’s focus on AVGC creator labs reflects a growing recognition of creative technology as a strategic economic pillar.

“The Union Budget 2026–27’s support for the Animation, Visual Effects, Gaming and Comics (AVGC) sector through the expansion of AVGC creator labs is a strong step toward building India’s creative and digital talent pipeline,” Rathee said, adding that initiatives like these could widen access to skilled talent while accelerating original intellectual property creation and high-quality game development.

From the esports and creator economy perspective, Animesh Agarwal, Founder and CEO of S8UL Esports and 8Bit Creatives, underlined the urgency of structured skilling as the sector scales.

“The projection of two million professionals required by 2030 highlights both the scale of the opportunity and the responsibility on industry and institutions to prepare future-ready talent,” Agarwal said, noting that the announcement could help position India as a global hub for animation, gaming and digital storytelling.

Kulmani Rana, Founder, Fibonacci X, said the announcement marks a decisive policy signal for India’s creative economy.

“The announcement on AVCG content creator labs signals a clear policy push towards building India’s Orange Economy, where creativity, technology and entrepreneurship converge. By embedding content creation, animation, gaming and digital storytelling skills into schools and colleges, the Budget recognises creative talent as a serious economic asset. This is a critical step in creating globally competitive startups, export-ready intellectual property and new forms of employment for India’s youth, while positioning the creative economy as a long-term growth driver alongside manufacturing and technology.”

Hardware and infrastructure players also see the move as a catalyst for building globally competitive capabilities. Vishal Parekh, Chief Operating Officer, CyberPowerPC India, said the rollout of creator labs creates demand for high-performance computing environments aligned with international benchmarks.

“This initiative can accelerate job creation and empower young Indians to pursue high-value careers in gaming, animation, and visual technologies,” Parekh said, while pointing to the need for access to advanced tools to realise the policy vision.

From an incubation and entrepreneurship lens, Sagar Nair, Head of Incubation at LVL Zero Incubator, described the announcement as a foundational step for India’s creative economy. He emphasised that early exposure to AVGC disciplines, when combined with incubation support, could translate into original IP creation and globally competitive startups.

The Budget announcement also resonated strongly with stakeholders working at the campus level. Sumedha Mahajan, Head of Marketing at Ampverse DMI, said national-level backing for creator labs would help accelerate institutional acceptance of esports and competitive gaming as credible career pathways.

“This kind of national-level support will go a long way in strengthening institutional confidence, and will accelerate the mainstream adoption of esports, animation and competitive esports as part of India’s future-ready youth economy,” Mahajan said.

Studios focused on original game development highlighted the importance of policy recognition for long-term investment decisions. Roby John, CEO and Co-founder of SuperGaming, said the formal recognition of the AVGC-XR sector provides stability for studios building from India for global audiences.

“What India needed is access, tools and belief in our potential to create IP right here in India,” John said. “Formal recognition of the AVGC-XR sector gives the industry long-term stability, and helps studios like ours invest with confidence.”

Industry bodies also welcomed the move as a culmination of sustained engagement with policymakers. Manish Agarwal, Board Member, Game Developer Association of India (GDAI), described the announcement as a landmark intervention that strengthens the talent pipeline from school through to industry readiness.

Publicly listed gaming companies echoed similar sentiments. Nitish Mittersain, Joint Managing Director and CEO of Nazara Technologies, said the Budget’s focus on AVGC goes beyond employment, linking grassroots skilling with the development of original Indian IP and global competitiveness.

Investors tracking interactive media and gaming said the alignment of AVGC with XR sends a strong signal internationally. Anuj Tandon, Partner – India and UAE at BITKRAFT Ventures, said policy clarity, skilling and infrastructure support collectively reinforce India’s positioning as a serious long-term market for interactive media.

Founders of emerging studios also viewed the announcement as a shift in India’s role within the global gaming ecosystem. Anurag Choudhary, Founder and CEO of Felicity Games, said early talent development could help India transition from being primarily a consumption market to a producer of export-driven content.

Kashyap Reddy, Co-founder and CEO of Metasports, pointed to the importance of nurturing creative talent alongside India’s established strengths in technology and analytics, while Jeet Chandan, Co-founder of Shortgun Games, described the creator labs as a “game-changing talent pipeline” for XR-led game design and global IP creation.