According to him, India currently contributes less than one per cent to the market but has the potential to grow to three per cent with appropriate policies.
The global Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) market is expected to grow to USD 882 billion by the financial year 2030, up from USD 596.7 billion in the current fiscal, the Minister, who holds the Information Technology and Biotechnology portfolio, said at the inaugural session of the three-day event, Bengaluru GAFX-2025.
“India currently contributes less than one per cent to the global market, but with the right policies, it could expand to three per cent by FY30, reaching USD 26 billion,” Kharge said.
He pointed out that India’s Animation and VFX industry is growing at a CAGR of 10.94 per cent, while the gaming industry follows closely with a Compound Annual Growth Rate (CAGR) of 9.64 per cent.
From 2014 to 2020, Indian gaming startups attracted USD 350 million in venture capital funding, and the sector is growing at an impressive CAGR of 22 per cent, the Minister told the gathering.
According to him, the AVGC sector is poised for significant expansion, with projections indicating a USD 25 billion market by 2030.
Kharge said India’s AVGC sector is export-driven, with 70 to 80 per cent of work catering to global clients.
The country is set to capture a larger share of the global AVGC market, which is estimated to grow at a CAGR of 37 per cent by 2031, he noted.
Discussing India’s online gaming market, he said it is currently valued at USD 2.6 billion and is expected to nearly double by 2025.
“India is surpassing major markets like China in game downloads,” Kharge pointed out.
The Minister also highlighted Karnataka’s role in the AVGC-XR sector, stating that the state’s AVGC Policy 2024-2029 is designed to propel the industry forward by establishing AVGC Centers of Excellence to provide world-class training and Research and Development support.
According to him, Karnataka is already home to over 300 AVGC companies, contributing nearly 20 per cent to India’s AVGC output.
Further, Kharge said the state aims to emerge as a global hub for digital content creation.
