Emphasising the rapid expansion of India’s animation, visual effects, gaming, comics, and extended reality (AVGC-XR) ecosystem, Finance Minister Nirmala Sitharaman noted that the sector is expected to generate demand for nearly two million skilled professionals by 2030.
During her speech, Sitharaman announced that the budget proposes support for the Indian Institute of Creative Technologies (IICT), Mumbai, to establish AVGC Content Creator Labs across 15,000 secondary schools and 500 colleges. The budget also proposes establishing a new National Institute of Design in order to address shortages in the design sector, helping the country’s talent to keep pace with industry growth.
The IICT offers advanced programmes in integrated media post-production, animation, VFX, XR, and other emerging technologies, seamlessly blending academic excellence, industry collaboration, and state-of-the-art infrastructure under one roof. Jointly inaugurated by Union Minister for Information and Broadcasting Ashwini Vaishnaw and Maharashtra Chief Minister Devendra Fadnavis, the Indian Institute of Creative Technologies (IICT), located at the NFDC Films Division Complex on Pedder Road in Mumbai, commenced its academic programmes in September 2025.
Here’s what people from the AVGC-XR sector have to say about the Union Budget 2026:
Hailing the announcement of new Content Creator Labs and NID, Graphiti Studios co-founder and FICCI – AVGC-XR Forum chairman Munjal Shroff mentioned that the move will build a pipeline of storytellers and technologists creating original IP for global markets. “Sustained growth of the orange economy rests on a skilled workforce, and this Budget lays the foundation through early exposure, structured skilling and institutional capacity. IICT is poised to deliver world‑class talent at scale for Create in India, for the world.”
Green Gold Animation founder and CEO Rajiv Chilaka said, “The finance minister’s focus on AVGC and content creation in schools and colleges marks a transformative step for India’s creative economy. By setting up labs across thousands of institutions, the government is building a sustainable talent pipeline to meet the industry’s need for nearly two million professionals by 2030. Crucially, this will empower regional creators with access to world‑class tools and training, driving original IP in local languages, expanding jobs, and boosting cultural exports. These measures strengthen skill development and position India as a global hub for high‑value digital content, gaming, and animation- a future‑ready policy direction unlocking growth, innovation, and competitiveness.”
Terming the support to IICT as a meaningful step, Studio Eeksaurus founder and creative director Suresh Eriyat mentioned that this move is exactly the long‑term thinking a creative economy needs. “Nurturing creativity from childhood builds a stronger foundation than trying to spark it later. I recall speaking to Chinese school children in 2010 about animation filmmaking; even small sparks planted then have contributed to China’s rise as a global animation powerhouse, with films like Nezha 2. If India commits to similar steps today, 15 years from now we could see a confident, globally influential creative industry of our own.”
Powerkids Entertainment (Singapore) CEO & managing director Manoj Mishra expressed his opinion on the budget by saying, “The AVGC sector is currently facing significant headwinds globally, and India is no exception. In this context, the government’s initiative is a timely and welcome step that can meaningfully boost morale across the Indian AVGC ecosystem. That said, the real impact will ultimately hinge on effective and sustained implementation.”
Reliance Animation CEO Tejonidhi Bhandare expressed, “With the overall growth in the demand for artists, the AVGC task force is eminent. The orange economy marks a defining moment for India where art, technology, and policy converge. By nurturing AVGC talent nationwide, India is laying the foundation for a creative superpower that will influence entertainment, culture, and digital experiences across the world.”
Sharing another concern of the industry alongside praising the Minister’s move, Cosmos Maya international division CEO Adi Shayan said, “India’s AVGC industry warmly welcomes the finance minister’s support for skill development. World‑class talent is vital for the orange economy to drive growth, and IICT’s creator labs across 15,000 schools and 500 colleges could be a game‑changer, enabling content from every corner of the country to find global audiences. However, clarity on the AVGC incentive policy announced to attract global producers remains a priority request from the industry.”
DNEG India studio head A.R. SeshPrasad commented, “Very positive move in creating interest and opening career paths into AVGC sector. Early exposure ensures students gain practical skills in animation, gaming, VFX, and comics, directly tackling the demand-supply mismatch.”
Paperboat Design Studios & Occult VFX Studios co-founder/ director Ashish Mall spoke on a completely different angle. “The two million jobs claim is questionable. Post‑AI, much of the AVGC workforce has already been displaced, and the real need is retraining professionals, not inflating headcount. AI’s purpose is cost and manpower reduction — so promising millions of new jobs feels misleading. Labs in schools won’t solve this; what India needs is watertight primary education with art and aesthetics as fundamentals. Tools can be learnt on YouTube, and AI will change them again before students enter the market. The government’s role is to strengthen foundations first, skills later. Honestly, it’s unclear who is advising on this policy.”
Raj Comics founder Sanjay Gupta shared, “Union Budget 2026 marks a decisive moment for India’s AVGC sector, recognising creative industries as engines of jobs, innovation, and cultural influence. For decades, Indian creators have championed homegrown narratives. A standout proposal is the creation of AVGC labs in 15,000 schools and 500 colleges, supported by IICT Mumbai, democratising access to tools, training, and creative skills nationwide. This initiative prepares students for an industry projected to need two million professionals by 2030, laying the foundation for India to lead global AVGC innovation and cultural exports. With the right support, Indian creators can build world‑class studios, globally loved characters, and powerful IPs that carry India’s voice to the world. The future of Indian creativity has never looked brighter.”
Small Town Boys Studio founder Alok Sharma feels that the Union Budget 2026 signals the government’s serious intent to expand India’s AVGC‑XR industry. “The key now is clarity on how funds will be deployed across sectors, each with distinct challenges. While services drive revenue and jobs, India’s soft power ultimately rests on original IP, an area needing significant push. With the right support, Indian comics can anchor IP creation across verticals and transform the AVGC‑XR ecosystem into a cultural juggernaut. Funding should strengthen existing streams while building original Indian IPs as global ambassadors, much like Korean and Japanese successes. Greater transparency in allocation, policy, and future planning will be a welcome step forward.”
Vaibhavi Studios writer/ director Sourav Roychoudhury shared, “This was a great move by the government- Hopes are high as India will prepare at the grassroots level for the future. Indian animation is going to peak very soon and remain there for long.”
Abhijeet Kini Studios founder and illustrator Abhijeet Kini mentioned, “The budget has given a boost to the AVGC sector. While this is good, I would still be waiting to see how much of it trickles in the direction of the comics sector, since usually the larger pieces of the pie are towards other sectors. Good to know that new content labs etc are planned at educational levels and since I have been on the educational side of things as well, it’s a good initiative to get the next wave of creative people ready for the industry.”
Nodwin Gaming co-founder and MD Akshat Rathee shared his thoughts saying, “The Union Budget 2026–27’s support for AVGC creator labs marks an important step in building India’s creative and digital talent pipeline. Backing the Indian Institute of Creative Technologies reflects a commitment to equipping young people with skills in animation, gaming and storytelling. As organisers of platforms such as NH7 Weekender and Comic Con India, we see clear value in widening the talent pool and enabling more culturally relevant content to thrive.”
S8UL Esports and 8Bit Creatives founder and CEO Animesh Agarwal expressed, “Having built teams and businesses in gaming and esports over the years, I’ve seen first-hand how rapidly the AVGC sector is growing and how urgently India needs structured skilling to keep pace. The projection of two million professionals required by 2030 highlights both the scale of the opportunity and the responsibility on industry and institutions to prepare future-ready talent. Initiatives like these will not only create meaningful career pathways for young Indians but also help position India as a global hub for animation, gaming, and digital storytelling.”
While commenting about the budget CyberPowerPC India chief operating officer Vishal Parekh said, “The Budget’s support for AVGC creator labs in 15,000 schools and 500 colleges is a significant step towards building a future workforce. Meeting the sector’s projected demand will require access to high‑performance computing and strong foundations in education. We welcome the government’s commitment to strengthening the AVGC ecosystem.”
LVL Zero Incubator incubation head Sagar Nair put forward his thoughts saying, “The finance minister’s announcement underscores commitment to India’s creative economy. With AVGC labs planned in 15,000 schools and 500 colleges, early access to skills can encourage careers in animation, VFX, gaming and comics. Combined with incubation and entrepreneurship pathways, this approach can strengthen the talent pipeline, support job creation and help India compete globally.”
Funwave Studios founder Karan Hiranandani commented, “For years, talent learned by figuring things out alone. Support like this changes the path. It opens doors earlier and that changes everything.”
