In the annual budget for the year 2022-2023, Indian finance minister Nirmala Sitharaman has announced a special task force with the aim to promote the Animation, Visual effects, Comic, and Gaming (AVCG) industry in India.
The main aim of the task force is to develop and build up domestic capacity and to serve the global market. The finance minister said that the “AVCG industry offers immense potential as a form of entertainment and employment for the youth“.
Currently, the gaming industry consumption is steadily rising in India, but at the same time the majority of this consumption comes from internationally produced products. While domestic production and demand are on the rise, the increase is not significant enough for the industry to offer mass employment and generate any significant revenue.
With the setup of the special task force, the Indian government aims to increase domestic production in the industry to serve local and international demand. This will in turn provide employment opportunities within the country as well as open another revenue stream for the government.
India has emerged as one of the fastest-growing gaming markets in the world. The gaming industry in India is currently valued at $930 million and is estimated to grow 41% per year.
Venture capital funding for the Indian gaming startups stood at $350 million between 2014-2020 and it is growing at a Compound Annual Growth Rate (CAGR) of 22%. The high internet penetration rate and the low cost of internet play a major role in driving the online gaming sector in India.
Finance minister Nirmala Sitharaman also announced during her union budget 2022 speech that the government will introduce 5G telecom services during the financial year 2022-2023. The auctions will be held in the next fiscal year, after which private companies are expected to roll out the service.