It seems that the government wants to push India’s animation, visual effects, gaming and comics (AVGC) sector further into the policy mainstream. What remains unclear is whether this intent will translate into durable economic outcomes for the industry.

By committing to set up AVGC content-creator labs in 15,000 secondary schools and 500 colleges, and by projecting a demand for 2 Mn professionals by 2030, finance minister Nirmala Sitharaman, during her 2026 Budget speech, positioned the creative economy not as a soft-power add-on, but as a pillar of national infrastructure.

“India’s AVGC sector is a growing industry, projected to require 2 Mn professionals by 2030. I propose to support the Indian Institute of Creative Technologies, Mumbai in setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges,” Sitharaman said on February 1.

The Budget places AVGC alongside design, manufacturing-linked skills, and institutional capacity-building, hinting at a broader ambition to turn cultural production into an economic engine.

Yet, for an industry that has heard similar promises before, optimism seems cautious. Imperative to mention that the focus on the AVGC space has come in previous budgets, task forces, and policy notes, most notably the AVGC Task Force in 2022, without triggering the structural transformation the sector has long demanded.

Training initiatives were announced, centres of excellence were proposed, and global ambitions were articulated. What rarely followed was capital depth, IP incentives, or studio-level economic reform.

“From an industry perspective, this is one of the most supportive budgets the AVGC sector has seen. The media and entertainment sector has historically received limited attention in Union Budgets, so this level of policy recognition matters,” said Ananay Jain, partner and national M&E leader, Grant Thornton Bharat LLP.

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