India's Share In Global Animation, Gaming Market Can Expand To 3% By FY30, Says Minister
Priyank Kharge said India's animation and VFX industry is growing at a compound annual growth rate of 10.94%, while gaming industry follows closely with a 9.64% CAGR.
Karnataka Minister Priyank Kharge on Thursday emphasised the need for the right policies to expand India's contribution to the animation and gaming market.
According to him, India currently contributes less than 1% to the market but has the potential to grow to 3% with appropriate policies.
The global animation, visual effects, gaming, comics, and extended reality market is expected to grow to $882 billion by the financial year 2030, up from $596.7 billion in the current fiscal, the Minister, who holds the Information Technology and Biotechnology portfolio, said at the inaugural session of the three-day event, Bengaluru GAFX-2025.
"India currently contributes less than 1% to the global market, but with the right policies, it could expand to 3% by FY30, reaching $26 billion," Kharge said.
He pointed out that India's animation and VFX industry is growing at a compound annual growth rate of 10.94%, while the gaming industry follows closely with a CAGR of 9.64%.
From 2014 to 2020, Indian gaming startups attracted $350 million in venture capital funding, and the sector is growing at an impressive CAGR of 22%, the minister told the gathering.
According to him, the AVGC sector is poised for significant expansion, with projections indicating a $25 billion market by 2030.
Kharge said India’s AVGC sector is export-driven, with 70–80% of work catering to global clients.
The country is set to capture a larger share of the global AVGC market, which is estimated to grow at a CAGR of 37% by 2031, he noted.
Discussing India’s online gaming market, he said it is currently valued at $2.6 billion and is expected to nearly double by 2025.
"India is surpassing major markets like China in game downloads," Kharge pointed out.
The minister also highlighted Karnataka’s role in the AVGC-XR sector, stating that the state's AVGC Policy 2024-2029 is designed to propel the industry forward by establishing AVGC Centers of Excellence to provide world-class training, and research and development support.
According to him, Karnataka is already home to over 300 AVGC companies, contributing nearly 20% to India’s AVGC output.
Further, Kharge said the state aims to emerge as a global hub for digital content creation.
