Yojana Magazine May 2025 | Monthly Yojana & Kurukshetra Magazine (English) - UPSC PDF Download

 Page 1


YOJANA
Media & Entertainment Sector
May, 2025
Page 2


YOJANA
Media & Entertainment Sector
May, 2025
  2 
   
CHAPTER 1: INDIAN MEDIA AND ENTERTAINMENT INDUSTRY
India’s M&E industry is among the fastest-growing globally, driven by affordable internet , rising incomes, 
and rapid digital adoption . It is witnessing increasing Average Revenue Per User (ARPU) and expanding 
content volumes.
• As per the FICCI-EY report, India’s advertising-to-GDP ratio is expected to rise from 0.38% (2019) to 
0.4% by 2025.
INDUSTRY SIZE AND GROWTH PROJECTIONS
• Projected to grow at 10% CAGR, reaching Rs. 3.08 trillion by 2026 (from Rs. 2.55 trillion in 2024).
• Traditional media (TV, print, radio, etc.) contributed 57% of 2023 revenues; print media expected to 
grow 8–10% in FY25 (ICRA).
• Video market (TV + digital): Forecasted to grow from US$ 13 billion (2023) to US$ 17 billion by 2028 
(Media Partners Asia).
KEY SEGMENTS AND DIGITAL SURGE
• Advertising : Projected at Rs. 330 billion in 2024, with TV and digital ads each contributing 38% . India 
ranks 8th globally in ad spend and is the fastest-growing among the top 10 markets.
• OTT & Video Streaming: Growing at a CAGR of 14.1%, the segment is expected to reach Rs. 21,032 
crore by 2026. India had 481.1 million users in 2023, including 138.2 million paid subscribers and 130.2 
million SVOD accounts (2022). Revenues from international users on Indian OTT platforms surged by 
194% over two years.
• AVGC Sector (Animation, VFX, Gaming, Comics) : Expected to grow at ~9% CAGR, reaching Rs. 3 lakh 
crore by 2024. Animation and VFX alone are projected to grow from US$ 1.3 billion (2023) to US$ 2.2 
billion (2026) (CII GT report), increasing their share in the M&E industry from 5% to 6%.
• Online Gaming: The 4th largest M&E segment, India’s online gaming market is projected to reach US$ 
7 billion by 2025. The country had 455 million gamers in 2023, expected to rise to 491 million in 2024, 
with 90 million paying users. Revenue stood at US$ 3.8 billion in FY24, marking a 23% YoY growth. 
Mobile gaming time increased by 20% in Q1 FY24.
OTHER NOTABLE SEGMENTS
• Digital Media: Projected to generate US$ 10.07 billion in revenue in 2024.
• Smart TVs & Short-form Videos: India is expected to have 40–50 million connected smart TVs by 2025. 
Around 600–650 million users are consuming short videos with an average daily viewing time of 55–60 
minutes.
Page 3


YOJANA
Media & Entertainment Sector
May, 2025
  2 
   
CHAPTER 1: INDIAN MEDIA AND ENTERTAINMENT INDUSTRY
India’s M&E industry is among the fastest-growing globally, driven by affordable internet , rising incomes, 
and rapid digital adoption . It is witnessing increasing Average Revenue Per User (ARPU) and expanding 
content volumes.
• As per the FICCI-EY report, India’s advertising-to-GDP ratio is expected to rise from 0.38% (2019) to 
0.4% by 2025.
INDUSTRY SIZE AND GROWTH PROJECTIONS
• Projected to grow at 10% CAGR, reaching Rs. 3.08 trillion by 2026 (from Rs. 2.55 trillion in 2024).
• Traditional media (TV, print, radio, etc.) contributed 57% of 2023 revenues; print media expected to 
grow 8–10% in FY25 (ICRA).
• Video market (TV + digital): Forecasted to grow from US$ 13 billion (2023) to US$ 17 billion by 2028 
(Media Partners Asia).
KEY SEGMENTS AND DIGITAL SURGE
• Advertising : Projected at Rs. 330 billion in 2024, with TV and digital ads each contributing 38% . India 
ranks 8th globally in ad spend and is the fastest-growing among the top 10 markets.
• OTT & Video Streaming: Growing at a CAGR of 14.1%, the segment is expected to reach Rs. 21,032 
crore by 2026. India had 481.1 million users in 2023, including 138.2 million paid subscribers and 130.2 
million SVOD accounts (2022). Revenues from international users on Indian OTT platforms surged by 
194% over two years.
• AVGC Sector (Animation, VFX, Gaming, Comics) : Expected to grow at ~9% CAGR, reaching Rs. 3 lakh 
crore by 2024. Animation and VFX alone are projected to grow from US$ 1.3 billion (2023) to US$ 2.2 
billion (2026) (CII GT report), increasing their share in the M&E industry from 5% to 6%.
• Online Gaming: The 4th largest M&E segment, India’s online gaming market is projected to reach US$ 
7 billion by 2025. The country had 455 million gamers in 2023, expected to rise to 491 million in 2024, 
with 90 million paying users. Revenue stood at US$ 3.8 billion in FY24, marking a 23% YoY growth. 
Mobile gaming time increased by 20% in Q1 FY24.
OTHER NOTABLE SEGMENTS
• Digital Media: Projected to generate US$ 10.07 billion in revenue in 2024.
• Smart TVs & Short-form Videos: India is expected to have 40–50 million connected smart TVs by 2025. 
Around 600–650 million users are consuming short videos with an average daily viewing time of 55–60 
minutes.
  3 
   
• Music Streaming: Set to grow from US$ 180 million (2019) to US$ 445 million (2026). India had 185 
million listeners in 2023, but only 7.5 million were paid subscribers. Major platforms include Gaana 
(30%), Spotify (26%) , JioSaavn (24%), and Wynk (15%).
• DTH Services: Estimated to grow from US$ 6.48 billion (2023) to US$ 7.59 billion (2029), at a CAGR of 
2.8%.
INVESTMENTS & DEVELOPMENTS
• FDI Inflows : Totalled Rs. 99,096 crore in the Information & Broadcasting sector from April 2000 to 
September 2024.
• Private Equity/Venture Capital Investments: Declined by 84% YoY to US$ 575 million in 2023. 
Q3 CY23 recorded 8 deals worth US$ 269 million.
GOVERNMENT INITIATIVES
The Government of India has taken several regulatory and institutional steps to support the structured and 
ethical growth of the Media & Entertainment (M&E) industry:
• FM and Radio Expansion: Prime Minister commissioned 100W FM transmitters at 91 locations (April 
2023). AIR’s reach extended to 615 transmitters , covering 73.5% of the population .
• International Promotion : India showcased its AVGC capabilities at the Annecy International Animation 
Festival in France (June 2023).
• Regulatory Reforms:
 ? TRAI is seeking to fast-track its recommendations to the Ministry of Information and Broadcasting 
(MIB) to catalyze broadcasting sector reforms.
 ? The Cable Television Network (Amendment) Rules, 2021 introduced a three-tier grievance redressal 
mechanism for citizens concerning TV content.
 ? The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 , 
notified on February 25, 2021, established a progressive regulatory structure for digital media, 
covering news publishers and OTT platforms through a three-layer grievance redressal system.
• Institutional Developments :
 ? The government is working to establish a National Centre of Excellence for Animation, Visual 
Effects, Gaming, and Comics (AVGC) in Mumbai. This announcement was reiterated in November 
2021.
 ? The Indian Broadcasting Foundation (IBF) expanded its mandate in May 2021 to include digital and 
OTT platforms, renaming itself as the Indian Broadcasting and Digital Foundation (IBDF) . IBDF is 
also tasked with setting up a Self-Regulatory Body (SRB) under the 2021 IT Rules.
• International Cooperation :
 ? India and Canada signed an audio-visual co-production agreement , allowing producers in both 
nations to collaborate on creative content and cultural exchange.
 ? Prasar Bharati and PSM Maldives signed a cooperation agreement in February 2021 for capacity 
building in broadcasting.
• Support for OTT and Digital Platforms :
 ? OTT platforms such as Netflix, Amazon Prime Video, Disney+ Hotstar, ZEE5, and Voot have endorsed 
a self-regulation code finalized in February 2021 by the Digital Entertainment Committee of IAMAI , 
laying the foundation for responsible content creation.
• Content Oversight Expansion:
 ? In November 2020, OTT platforms , films, web series, news, and current affairs on digital platforms 
were brought under the purview of the Ministry of Information and Broadcasting .
Page 4


YOJANA
Media & Entertainment Sector
May, 2025
  2 
   
CHAPTER 1: INDIAN MEDIA AND ENTERTAINMENT INDUSTRY
India’s M&E industry is among the fastest-growing globally, driven by affordable internet , rising incomes, 
and rapid digital adoption . It is witnessing increasing Average Revenue Per User (ARPU) and expanding 
content volumes.
• As per the FICCI-EY report, India’s advertising-to-GDP ratio is expected to rise from 0.38% (2019) to 
0.4% by 2025.
INDUSTRY SIZE AND GROWTH PROJECTIONS
• Projected to grow at 10% CAGR, reaching Rs. 3.08 trillion by 2026 (from Rs. 2.55 trillion in 2024).
• Traditional media (TV, print, radio, etc.) contributed 57% of 2023 revenues; print media expected to 
grow 8–10% in FY25 (ICRA).
• Video market (TV + digital): Forecasted to grow from US$ 13 billion (2023) to US$ 17 billion by 2028 
(Media Partners Asia).
KEY SEGMENTS AND DIGITAL SURGE
• Advertising : Projected at Rs. 330 billion in 2024, with TV and digital ads each contributing 38% . India 
ranks 8th globally in ad spend and is the fastest-growing among the top 10 markets.
• OTT & Video Streaming: Growing at a CAGR of 14.1%, the segment is expected to reach Rs. 21,032 
crore by 2026. India had 481.1 million users in 2023, including 138.2 million paid subscribers and 130.2 
million SVOD accounts (2022). Revenues from international users on Indian OTT platforms surged by 
194% over two years.
• AVGC Sector (Animation, VFX, Gaming, Comics) : Expected to grow at ~9% CAGR, reaching Rs. 3 lakh 
crore by 2024. Animation and VFX alone are projected to grow from US$ 1.3 billion (2023) to US$ 2.2 
billion (2026) (CII GT report), increasing their share in the M&E industry from 5% to 6%.
• Online Gaming: The 4th largest M&E segment, India’s online gaming market is projected to reach US$ 
7 billion by 2025. The country had 455 million gamers in 2023, expected to rise to 491 million in 2024, 
with 90 million paying users. Revenue stood at US$ 3.8 billion in FY24, marking a 23% YoY growth. 
Mobile gaming time increased by 20% in Q1 FY24.
OTHER NOTABLE SEGMENTS
• Digital Media: Projected to generate US$ 10.07 billion in revenue in 2024.
• Smart TVs & Short-form Videos: India is expected to have 40–50 million connected smart TVs by 2025. 
Around 600–650 million users are consuming short videos with an average daily viewing time of 55–60 
minutes.
  3 
   
• Music Streaming: Set to grow from US$ 180 million (2019) to US$ 445 million (2026). India had 185 
million listeners in 2023, but only 7.5 million were paid subscribers. Major platforms include Gaana 
(30%), Spotify (26%) , JioSaavn (24%), and Wynk (15%).
• DTH Services: Estimated to grow from US$ 6.48 billion (2023) to US$ 7.59 billion (2029), at a CAGR of 
2.8%.
INVESTMENTS & DEVELOPMENTS
• FDI Inflows : Totalled Rs. 99,096 crore in the Information & Broadcasting sector from April 2000 to 
September 2024.
• Private Equity/Venture Capital Investments: Declined by 84% YoY to US$ 575 million in 2023. 
Q3 CY23 recorded 8 deals worth US$ 269 million.
GOVERNMENT INITIATIVES
The Government of India has taken several regulatory and institutional steps to support the structured and 
ethical growth of the Media & Entertainment (M&E) industry:
• FM and Radio Expansion: Prime Minister commissioned 100W FM transmitters at 91 locations (April 
2023). AIR’s reach extended to 615 transmitters , covering 73.5% of the population .
• International Promotion : India showcased its AVGC capabilities at the Annecy International Animation 
Festival in France (June 2023).
• Regulatory Reforms:
 ? TRAI is seeking to fast-track its recommendations to the Ministry of Information and Broadcasting 
(MIB) to catalyze broadcasting sector reforms.
 ? The Cable Television Network (Amendment) Rules, 2021 introduced a three-tier grievance redressal 
mechanism for citizens concerning TV content.
 ? The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 , 
notified on February 25, 2021, established a progressive regulatory structure for digital media, 
covering news publishers and OTT platforms through a three-layer grievance redressal system.
• Institutional Developments :
 ? The government is working to establish a National Centre of Excellence for Animation, Visual 
Effects, Gaming, and Comics (AVGC) in Mumbai. This announcement was reiterated in November 
2021.
 ? The Indian Broadcasting Foundation (IBF) expanded its mandate in May 2021 to include digital and 
OTT platforms, renaming itself as the Indian Broadcasting and Digital Foundation (IBDF) . IBDF is 
also tasked with setting up a Self-Regulatory Body (SRB) under the 2021 IT Rules.
• International Cooperation :
 ? India and Canada signed an audio-visual co-production agreement , allowing producers in both 
nations to collaborate on creative content and cultural exchange.
 ? Prasar Bharati and PSM Maldives signed a cooperation agreement in February 2021 for capacity 
building in broadcasting.
• Support for OTT and Digital Platforms :
 ? OTT platforms such as Netflix, Amazon Prime Video, Disney+ Hotstar, ZEE5, and Voot have endorsed 
a self-regulation code finalized in February 2021 by the Digital Entertainment Committee of IAMAI , 
laying the foundation for responsible content creation.
• Content Oversight Expansion:
 ? In November 2020, OTT platforms , films, web series, news, and current affairs on digital platforms 
were brought under the purview of the Ministry of Information and Broadcasting .
  4 
   
• Ease of Filming:
 ? The Film Facilitation Office (FFO) under NFDC, in partnership with the Ministry of Railways, 
launched a single-window clearance system to simplify permission procedures for filming at railway 
locations.
ROAD AHEAD
India’s M&E sector is on a trajectory of high growth—expected to outpace the global average, driven by key 
structural and technological shifts:
• Digital Adoption : The roll-out of 5G and upcoming 6G planning, especially in rural regions, is poised to 
revolutionize content consumption, opening new markets for advertisers and content creators.
• Retail and E-Commerce Advertising : The entry of new players in food & beverage, increased e-commerce 
usage, and exploratory campaigns by domestic firms are likely to fuel growth in retail advertisements.
• Rural Expansion: As urban markets saturate, rural India is emerging as the next frontier for M&E growth, 
supported by rising incomes, internet penetration, and digital literacy.
CHAPTER 2: WAVES 2025
WAVES (World Audio Visual & Entertainment Summit) is a flagship global summit for the Media and 
Entertainment (M&E) sector, organized by the Ministry of Information and Broadcasting , Government of 
India. 
• It brings together global industry leaders, innovators, and stakeholders to deliberate on challenges and 
growth opportunities, foster international cooperation, and shape the future of the M&E industry.
• A key initiative launched during the summit is the “Create in India Challenge”, aimed at encouraging 
innovation, entrepreneurship, and content creation within India’s vibrant creative ecosystem.
CREATIVE ECONOMY (ORANGE ECONOMY)
The creative economy is a knowledge-intensive sector encompassing industries that involve the creation, 
production, and distribution of creative goods and services . These include:
• Advertising, architecture, design, and fashion
• Performing arts, visual arts, and literature
• Film, music, publishing, and photography
• Software, R&D, and digital content
India’s creative industry:
• Valued at USD 30 billion
• Employs nearly 8% of the national workforce
• Hosts over 100 million content creators as of 2023
INDIA’S MEDIA AND ENTERTAINMENT SECTOR
• India has the 5th largest M&E industry globally (after the US).
• Projected to grow to USD 44.2 billion by 2028
• A key pillar of India’s soft power and digital economy, contributing significantly to employment, exports, 
and innovation.
CHAPTER 3: UNLEASHING INDIA’S CREATIVE CAPITAL FOR  
ECONOMIC & CULTURAL RISE
India’s Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector is undergoing 
rapid growth, poised to become a global content creation powerhouse in the next 5–6 years. Government 
initiatives, a rich talent pool, and expanding digital infrastructure are felling this transformation.
Page 5


YOJANA
Media & Entertainment Sector
May, 2025
  2 
   
CHAPTER 1: INDIAN MEDIA AND ENTERTAINMENT INDUSTRY
India’s M&E industry is among the fastest-growing globally, driven by affordable internet , rising incomes, 
and rapid digital adoption . It is witnessing increasing Average Revenue Per User (ARPU) and expanding 
content volumes.
• As per the FICCI-EY report, India’s advertising-to-GDP ratio is expected to rise from 0.38% (2019) to 
0.4% by 2025.
INDUSTRY SIZE AND GROWTH PROJECTIONS
• Projected to grow at 10% CAGR, reaching Rs. 3.08 trillion by 2026 (from Rs. 2.55 trillion in 2024).
• Traditional media (TV, print, radio, etc.) contributed 57% of 2023 revenues; print media expected to 
grow 8–10% in FY25 (ICRA).
• Video market (TV + digital): Forecasted to grow from US$ 13 billion (2023) to US$ 17 billion by 2028 
(Media Partners Asia).
KEY SEGMENTS AND DIGITAL SURGE
• Advertising : Projected at Rs. 330 billion in 2024, with TV and digital ads each contributing 38% . India 
ranks 8th globally in ad spend and is the fastest-growing among the top 10 markets.
• OTT & Video Streaming: Growing at a CAGR of 14.1%, the segment is expected to reach Rs. 21,032 
crore by 2026. India had 481.1 million users in 2023, including 138.2 million paid subscribers and 130.2 
million SVOD accounts (2022). Revenues from international users on Indian OTT platforms surged by 
194% over two years.
• AVGC Sector (Animation, VFX, Gaming, Comics) : Expected to grow at ~9% CAGR, reaching Rs. 3 lakh 
crore by 2024. Animation and VFX alone are projected to grow from US$ 1.3 billion (2023) to US$ 2.2 
billion (2026) (CII GT report), increasing their share in the M&E industry from 5% to 6%.
• Online Gaming: The 4th largest M&E segment, India’s online gaming market is projected to reach US$ 
7 billion by 2025. The country had 455 million gamers in 2023, expected to rise to 491 million in 2024, 
with 90 million paying users. Revenue stood at US$ 3.8 billion in FY24, marking a 23% YoY growth. 
Mobile gaming time increased by 20% in Q1 FY24.
OTHER NOTABLE SEGMENTS
• Digital Media: Projected to generate US$ 10.07 billion in revenue in 2024.
• Smart TVs & Short-form Videos: India is expected to have 40–50 million connected smart TVs by 2025. 
Around 600–650 million users are consuming short videos with an average daily viewing time of 55–60 
minutes.
  3 
   
• Music Streaming: Set to grow from US$ 180 million (2019) to US$ 445 million (2026). India had 185 
million listeners in 2023, but only 7.5 million were paid subscribers. Major platforms include Gaana 
(30%), Spotify (26%) , JioSaavn (24%), and Wynk (15%).
• DTH Services: Estimated to grow from US$ 6.48 billion (2023) to US$ 7.59 billion (2029), at a CAGR of 
2.8%.
INVESTMENTS & DEVELOPMENTS
• FDI Inflows : Totalled Rs. 99,096 crore in the Information & Broadcasting sector from April 2000 to 
September 2024.
• Private Equity/Venture Capital Investments: Declined by 84% YoY to US$ 575 million in 2023. 
Q3 CY23 recorded 8 deals worth US$ 269 million.
GOVERNMENT INITIATIVES
The Government of India has taken several regulatory and institutional steps to support the structured and 
ethical growth of the Media & Entertainment (M&E) industry:
• FM and Radio Expansion: Prime Minister commissioned 100W FM transmitters at 91 locations (April 
2023). AIR’s reach extended to 615 transmitters , covering 73.5% of the population .
• International Promotion : India showcased its AVGC capabilities at the Annecy International Animation 
Festival in France (June 2023).
• Regulatory Reforms:
 ? TRAI is seeking to fast-track its recommendations to the Ministry of Information and Broadcasting 
(MIB) to catalyze broadcasting sector reforms.
 ? The Cable Television Network (Amendment) Rules, 2021 introduced a three-tier grievance redressal 
mechanism for citizens concerning TV content.
 ? The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 , 
notified on February 25, 2021, established a progressive regulatory structure for digital media, 
covering news publishers and OTT platforms through a three-layer grievance redressal system.
• Institutional Developments :
 ? The government is working to establish a National Centre of Excellence for Animation, Visual 
Effects, Gaming, and Comics (AVGC) in Mumbai. This announcement was reiterated in November 
2021.
 ? The Indian Broadcasting Foundation (IBF) expanded its mandate in May 2021 to include digital and 
OTT platforms, renaming itself as the Indian Broadcasting and Digital Foundation (IBDF) . IBDF is 
also tasked with setting up a Self-Regulatory Body (SRB) under the 2021 IT Rules.
• International Cooperation :
 ? India and Canada signed an audio-visual co-production agreement , allowing producers in both 
nations to collaborate on creative content and cultural exchange.
 ? Prasar Bharati and PSM Maldives signed a cooperation agreement in February 2021 for capacity 
building in broadcasting.
• Support for OTT and Digital Platforms :
 ? OTT platforms such as Netflix, Amazon Prime Video, Disney+ Hotstar, ZEE5, and Voot have endorsed 
a self-regulation code finalized in February 2021 by the Digital Entertainment Committee of IAMAI , 
laying the foundation for responsible content creation.
• Content Oversight Expansion:
 ? In November 2020, OTT platforms , films, web series, news, and current affairs on digital platforms 
were brought under the purview of the Ministry of Information and Broadcasting .
  4 
   
• Ease of Filming:
 ? The Film Facilitation Office (FFO) under NFDC, in partnership with the Ministry of Railways, 
launched a single-window clearance system to simplify permission procedures for filming at railway 
locations.
ROAD AHEAD
India’s M&E sector is on a trajectory of high growth—expected to outpace the global average, driven by key 
structural and technological shifts:
• Digital Adoption : The roll-out of 5G and upcoming 6G planning, especially in rural regions, is poised to 
revolutionize content consumption, opening new markets for advertisers and content creators.
• Retail and E-Commerce Advertising : The entry of new players in food & beverage, increased e-commerce 
usage, and exploratory campaigns by domestic firms are likely to fuel growth in retail advertisements.
• Rural Expansion: As urban markets saturate, rural India is emerging as the next frontier for M&E growth, 
supported by rising incomes, internet penetration, and digital literacy.
CHAPTER 2: WAVES 2025
WAVES (World Audio Visual & Entertainment Summit) is a flagship global summit for the Media and 
Entertainment (M&E) sector, organized by the Ministry of Information and Broadcasting , Government of 
India. 
• It brings together global industry leaders, innovators, and stakeholders to deliberate on challenges and 
growth opportunities, foster international cooperation, and shape the future of the M&E industry.
• A key initiative launched during the summit is the “Create in India Challenge”, aimed at encouraging 
innovation, entrepreneurship, and content creation within India’s vibrant creative ecosystem.
CREATIVE ECONOMY (ORANGE ECONOMY)
The creative economy is a knowledge-intensive sector encompassing industries that involve the creation, 
production, and distribution of creative goods and services . These include:
• Advertising, architecture, design, and fashion
• Performing arts, visual arts, and literature
• Film, music, publishing, and photography
• Software, R&D, and digital content
India’s creative industry:
• Valued at USD 30 billion
• Employs nearly 8% of the national workforce
• Hosts over 100 million content creators as of 2023
INDIA’S MEDIA AND ENTERTAINMENT SECTOR
• India has the 5th largest M&E industry globally (after the US).
• Projected to grow to USD 44.2 billion by 2028
• A key pillar of India’s soft power and digital economy, contributing significantly to employment, exports, 
and innovation.
CHAPTER 3: UNLEASHING INDIA’S CREATIVE CAPITAL FOR  
ECONOMIC & CULTURAL RISE
India’s Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector is undergoing 
rapid growth, poised to become a global content creation powerhouse in the next 5–6 years. Government 
initiatives, a rich talent pool, and expanding digital infrastructure are felling this transformation.
  5 
   
SECTOR OVERVIEW AND GROWTH POTENTIAL
• India currently houses over 4,000 AVGC studios, mainly concentrated in Mumbai, Bengaluru, Pune, 
Hyderabad, and Chennai, while smaller towns are also witnessing increased studio activity. 
• With a foundation rooted in India’s rich cultural heritage, diverse art forms, and skilled artists , the 
sector is increasingly being recognized for its potential in value creation and employment generation.
• The industry, growing at an annual pace of 25–35% in some segments, currently employs 2.6 lakh 
professionals and is expected to create 23 lakh direct jobs by 2032. 
• Revenue is projected to grow from the current USD 3 billion to over USD 26 billion by 2030. Although 
India’s current contribution to the global AVGC-XR market is just 0.5% , government estimates suggest 
that it can capture up to 5% (USD 40 billion) by 2025, creating 1,60,000 new jobs annually.
• Key job roles likely to emerge include content developers, animators, pre- and post-production artists, 
pre-visualization artists, compositors , and more.
CHALLENGES IN THE AVGC-XR SECTOR
• Lack of Authentic Data : The absence of reliable data on employment numbers, industry size, and 
educational institutions makes policy planning and investment decisions difficult.
• Skill Gap in Education and Employment : The sector demands a highly specialized workforce (animators, 
developers, designers, product managers, localization experts), but the current academic curriculum 
lacks alignment with industry requirements, leading to a shortage of skilled professionals.
• Infrastructure Constraints: Inadequate training infrastructure results in poor-quality instruction and 
substandard workforce output, negatively impacting the industry’s productivity and growth.
• Limited Focus on R&D: There’s a deficiency in dedicated research narratives , resulting in low innovation 
and a lack of academic inquiry into future trends in AVGC-XR technologies.
• No Apex Academic Institution : Unlike sectors such as engineering or design that have IITs and NIDs, AVGC 
lacks a national-level institution to guide academic excellence, innovation, and skill standardization.
• Funding Limitations : With no dedicated fund for promoting AVGC-XR, startups and innovators struggle 
with access to capital, slowing domestic production and technological innovation.
• Weak Indigenous IP Creation : Most of India’s AVGC output is outsourced foreign work; there’s a lack of 
globally recognized Indian intellectual property (IP). To compete globally, local content creation must 
be incentivized through tax benefits and other concessions.
GOVERNMENT INTERVENTIONS
• Educational Integration under NEP 2020 : The National Education Policy (NEP) 2020 integrates creative 
arts and design into curricula from Class 6 onwards, promoting early exposure to AVGC-XR skills. Already, 
around 5,000 schools (CBSE + state boards) have introduced AVGC-XR learning, with national rollout 
underway to make animation a family-friendly, mainstream medium .
• Policy Framework and Task Force: The 2022–23 Union Budget announced an AVGC Promotion Task 
Force to recommend measures for strengthening domestic capacity and global positioning. Several 
states—Karnataka, Maharashtra, and Telangana—have implemented proactive state-specific policies , 
often in collaboration with industry bodies like FICCI, ABAI, and SAIK to drive tailored growth.