BENGALURU: From powering Hollywood blockbusters to shaping the future of eSports, India’s animation, visual effects, gaming, and extended reality (AVGC-XR) industry has moved beyond the sidelines to take centre stage. With a $1.4 billion animation market, a gaming industry growing at 23% annually despite taxation challenges, and 590 million gamers nationwide, the country is no longer playing catch-up—it is setting the pace, said IT/BT Minister Priyank Kharge.
Kharge was speaking during the GAFX 2025 inauguration on Thursday, where expo, for the first time, is also open to the public for free of cost to enable connections between youngsters and creators.
During the event, the minister also announced plans for Karnataka to establish the country’s first AVGC-XR Park, with an aim to position it as a global hub for animation, visual effects, gaming, and comics.
“The park will be part of a larger initiative housing multiple technology-focused centres, offering state-of-the-art production studios, integration spaces for start-ups, international collaborations, and research facilities to drive innovation in immersive digital content.
As part of its long-term vision, Karnataka aims to collaborate with over 200 educational institutions and industry partners to train at least 50,000 professionals in AVGC-XR through specialised, standardised skill development programmes,” he said.
Kharge maintained that Bengaluru already leads India’s gaming sector, with Karnataka hosting the highest number of gaming start-ups. Over the past decade, the state has seen an average of three new companies launching each year.
Karnataka is also home to five institutes dedicated to animation, three focused on digital effects, and 12 specializing in gaming, making up a significant portion of India’s 129 AVGC training centre, Kharge said, adding that by 2029, the government aims for a 50% increase in operational efficiencies.
A major highlight of GAFX 2025 was the collaboration between Zebu Animation and Tinkle, unveiled by actor Rana Daggubati, to bring India’s iconic comics to life using advanced animation techniques. The Esports National Championship was another major attraction, where India’s top four esports teams competed in the grand finale of Counter-Strike 2.