← External Forces: Digital & Technology (all topics)

AVGC-XR (animation, VFX, gaming, comics & extended reality)

Technology & Product Transition · Digital & AI disruption

What it is

Animation, Visual Effects, Gaming, Comics and Extended Reality - the government's grouping for the content-technology sector, backed by a National Centre of Excellence and a promotion task force

India's role has historically been outsourced execution for global studios, and policy aims to shift it toward original IP creation and higher-value work

Impact on industries

  • Cost advantage and English-language technical talent make India a natural hub, with global studios already routing substantial VFX and animation work here
  • Feeds directly into streaming and film demand, so growth in OTT commissioning pulls domestic post-production and animation capacity with it
  • Service work captures little of what a title earns - the studio owns the IP while India bills hours, and generative AI threatens that mid-skill layer
  • Policy ambition is IP creation rather than services, but that requires financing risk and global distribution access, neither of which a skills mission supplies

Industries affected