Quiet groundwork laid over several years is now being scaled into a major growth strategy as Karnataka looks to turn creative technologies into a powerful economic engine.
The state plans to generate more than 50,000 high-value jobs by 2028 by strengthening animation, visual effects, gaming, comics and extended reality (AVGC-XR), said Priyank Kharge, Minister for Electronics, IT and BT, and Rural Development & Panchayat Raj, on Monday. The initiative is aimed at expanding the orange economy and positioning Karnataka as a global hub for creative technologies.
The push is anchored by a dedicated AVGC-XR policy supported by a ₹150 crore allocation. The state expects this effort to contribute close to 20% of India’s media and entertainment industry. The roadmap was outlined at the 7th edition of the Games, Animation and Visual FX (GAFX) conference held at Vikasa Soudha.
Kharge said Karnataka had been nurturing the orange economy for nearly 7 years, even before it gained wider policy attention. “The global creative economy is valued at close to $2 trillion. India’s orange economy alone has the potential to reach $35 billion, and Karnataka already contributes more than half of India’s AVGC export value,” he said.
The state currently has more than 15,000 AVGC professionals and handles a significant share of animation and VFX work for both domestic and international productions.
Kharge added that the AVGC policy has expanded to include extended reality, gaming and esports. “Our Centre of Excellence (COE) for AVGC has been functional for over 6 years, has executed more than 200 projects and incubated over 100 start-ups,” he said. The upcoming COE 2.0 will extend infrastructure and skilling support to tier 2 and tier 3 cities.
The announcement comes ahead of GAFX 2026, themed ‘Evolution Reloaded’, scheduled from February 27 to March 1. The event will focus on the impact of AI on creative content, skilling needs, policy feedback and access to global markets. A dedicated B2B investor connect will link IP creators with studios, broadcasters, OTT platforms and investors.
Brien Ghose, founder and CEO of Astra Studios and president of ABAI, described Karnataka as the “command centre” of India’s creative sector. “We are the only state with a third AVGC policy. Our task now is to convert policy into a living marketplace,” he said.
Kharge said sustained focus on skilling, incubation and IP creation would keep Karnataka ahead as the global creative economy grows.
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