Budget 2026: Gaming industry welcomes AVGC labs push

India’s gaming industry has welcomed the Union Budget 2026–27’s push for the orange economy, saying the announcement of AVGC content creator labs could unlock nearly 20 lakh new jobs, while helping address a looming talent shortage in one of the country’s fastest-growing digital sectors.

Finance Minister Nirmala Sitharaman said the orange economy could generate 20 lakh jobs, alongside the announcement to set up Animation, Visual Effects, Gaming and Comics (AVGC) creator labs in 15,000 secondary schools and 500 colleges. Gaming leaders said the move signals long-term intent at a time when the industry is scaling rapidly in size, investment and brand interest.

India’s gaming market is currently valued between $3.7 billion and over $4 billion, backed by a massive base of 400–500 million gamers. The sector is projected to grow to $9–10 billion by 2029, driven by esports, live streaming, creator-led communities and the rise of original Indian gaming and pop culture IPs. 

Also read: Budget 2026: Gaming industry pushes for GST relief & AVGC funding

Industry executives said the biggest challenge now is talent availability, as gaming expands beyond gameplay into live production, immersive storytelling, esports operations and IP-led entertainment.  The gaming industry had been seeking a cut in the tax rate from the current 28% to 18%, arguing it would ease cost pressures and spur growth.

Akshat Rathee, co-founder and managing director of NODWIN Gaming, "As organizers of large-scale cultural platforms such as the NH7 Weekender and Comic Con India, we are constantly seeking skilled talent to shape immersive experiences, and initiatives like these will help widen that pool while accelerating original IP creation and high-quality game development. Greater access to creative technologies will enable more homegrown, culturally relevant content to thrive."

Esports entrepreneurs echoed the sentiment, saying structured skilling is critical to sustaining growth at scale. Animesh Agarwal, founder and CEO of S8UL Esports and 8Bit Creatives, said the numbers underline the urgency.

"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."

Gaming hardware and infrastructure players said the impact would depend on whether skilling is supported by access to global-grade technology.

Vishal Parekh, chief operating officer of CyberPowerPC India, said computing infrastructure will be key to realising the job potential.

"The Budget’s support for AVGC creator labs marks a powerful step toward building a future-ready workforce. With the sector projected to require 2 million professionals by 2030, this initiative can accelerate job creation and empower young Indians to pursue high-value careers in gaming, animation, and visual technologies."

Incubators and creator platforms said the announcement could also strengthen entrepreneurship and original IP creation within gaming. Sagar Nair, head of incubation at LVL Zero Incubator, said early exposure could help creators build globally competitive businesses.

Parth Chadha, co-founder and CEO of STAN, said the move reflects the growing recognition of creator-led gaming communities. "Seeing Creator Labs come into schools and colleges is a powerful signal that the country is preparing the next generation for careers in the creative and digital world. What started as a grassroots movement is now part of India’s broader vision for the ‘orange economy.’"

However, some industry leaders cautioned that skilling alone will not be enough.

Rohit Agarwal, founder and director of Alpha Zegus, said the industry was now seeking execution clarity and direct incentives alongside talent development.

"When the AVGC labs were first announced in 2025, the enthusiasm was real because it was the first time India explicitly acknowledged the pipeline challenge for creative tech. Labs in secondary schools and colleges can seed interest, but the industry was hoping Budget 2026 would add execution clarity, timelines and committed funding envelopes rather than headline targets alone.

Skilling infrastructure remains important, but the conversation has matured. Today creators and studios are asking equally for direct economic incentives — think tax relief on creative exports, R&D credits for IP creation, production grants, subsidised credit for studios, and export-linked support. Skilling builds talent; incentives build businesses."

While the announcement has been welcomed, gaming executives said the real test will lie in execution, with the sector now looking for clear rollout timelines, industry partnerships and fiscal incentives to translate talent creation into long-term growth.