Karnataka is planning a dedicated AVGC-XR Park and a Gaming Centre of Excellence (CoE) in a step to augment the growth of Animation, Visual Effects, Gaming, and Comics (AVGC) sector in the state. These initiatives will be part of the its broader strategy to support innovation, research and development within the rapidly evolving gaming and media industries.
Speaking at a curtain raiser event on Monday, Priyank Kharge, Karnataka’s Minister for Information Technology & Biotechnology and Rural Development and Panchayat Raj, said, “Our initiatives, including the KITVEN Fund 4, which aims to support startups and SMEs in the AVGC-XR sector, highlight our dedication to establishing Karnataka as a global hub for AVGC.”
“The state’s 20 per cent market share is driven by around 300 specialised AVGC-XR studios employing approximately 15,000 professionals,” he added.
The AVGC-XR Park and Gaming CoE will look to serve as hubs for cutting-edge research and development, providing a comprehensive ecosystem for startups, SMEs and professionals in the AVGC and gaming industries. The facilities will offer incubation support, mentorship and access to state-of-the-art resources, including a common instrumentation facility and virtual production houses.
In addition to the physical infrastructure, the AVGC-XR Park and Gaming CoE will host a range of events including hackathons, game jams and industry conferences, which will provide opportunities for professionals and enthusiasts to showcase their skills, learn from industry leaders and engage in meaningful networking.
In a statement, Dr Ekroop Caur, Secretary to the Government in the Department of E, IT, Bt, and S&T, said, “The global market for animation and visual effects is anticipated to reach around USD 282.3 billion by FY2026, while the gaming market is expected to expand to USD 314.4 billion. Karnataka is set to play a significant role in this expansion, contributing to India's growing AVGC sector.”
To boost the AVGC-XR sector, the KITVEN Fund 4 has been previously introduced in the state with a fund size of Rs 20 crore. This corpus is dedicated to investing in startups and SMEs in the sector. Under this initiative, the funding ranges from Rs 50 lakh to Rs 1 crore per company initially, with follow-on investments of up to Rs 2 crore.
Karnataka will also host the 6th edition of GAFX 2025 event next year, which will be held on February 27, 28 and March 1, 2025 to encourage the AVGC sector.
