India’s biggest M&E Policy Push: NCoE for AVGC-XR is Real Now

By Pickle  September 19, 2024

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India is preparing to boost its position in the global media and entertainment industries by establishing a National Centre of Excellence (NCoE) for Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR). This effort, approved by the Union Cabinet and led by Prime Minister Narendra Modi on September 18 (Wednesday), intends to accelerate growth in the AVGC-XR sector, positioning India as a hub for cutting-edge content creation while also stimulating innovation and supporting economic progress.

The establishment of the NCoE in AVGC-XR has long been a policy vision of the Ministry of Information & Broadcasting, aiming to elevate India’s prowess in these fields to global standards

The NCoE will be headquartered in Mumbai, Maharashtra, and will function as a Section 8 business in collaboration with industry associations — Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII).

The NCoE will be a joint venture with the Ministry of Information and Broadcasting holding a 48% stake, while FICCI and CII  each hold 26%. This structure ensures that the private sector leads the transformation of the AVGC industry, with the government acting as a catalyst for growth.

This is a big step forward, following the Finance Minister’s announcement in the 2022-23 budget to establish an AVGC Task Force. The institute will offer specialized training, research, and development, as well as serve as an incubator for startups and early-stage firms, thereby bridging gaps in India’s AVGC-XR ecosystem.

Opening the Way for Growth

The AVGC-XR sector is critical to the media, entertainment, education, healthcare, and advertising industries. Its expansion is driven by India’s rising digital infrastructure, which includes one of the world’s lowest data costs and an ever-increasing number of internet users. The National Centre of Excellence plans to capitalize on this potential by generating domestic intellectual property (IP) and producing content anchored on India’s rich cultural past. The institution will also play an important role in recruiting foreign investment and strengthening India’s soft power abroad.

Developing a Stronger Creator Economy

India’s creative economy is being prioritized as a source of both economic growth and job creation. The NCoE will serve as an academic and industry accelerator, providing resources, training, and growth opportunities for a new generation of creative professionals. By providing the most up-to-date skill sets to both amateurs and professionals, the NCoE will ensure that India’s creative potential is ready to compete globally.

National and Global Impact

By establishing a viable content hub in India, the NCoE will further the Atmanirbhar Bharat initiative’s goals of making India self-sufficient in the AVGC-XR industry. Furthermore, it intends to generate 10,000 hours of animation content, making considerable progress in content creation and distribution, particularly through platforms such as Prasar Bharti’s new OTT service, which opens up revenue options.

Future Directions: SummitFX 2024 Insights

The recently concluded CII SummitFX 2024 shed light on the National Centre of Excellence’s future. Experts stressed the value of creativity and technology in excelling efficiency in the field. The discussions also emphasized India’s expanding significance in the global AVG market, as well as the importance of collaboration among business, academia, and government to encourage innovation outside traditional forms.

Additional attempts include incorporating creative arts into the National Education Policy (NEP) through collaborations like Swayam and Swayam Plus, the Ministry of Education’s (MoE) existing Massive Open Online Course (MOOC) platform providing educational opportunities for a vast number of learners will boost India’s creative and entertainment economy.

The NCoE aspires to provide a model for regional replication, allowing states to create local talent pools and increasing India’s overall creative output. With worldwide market connections and infrastructure assistance for entrepreneurs, the NCoE will democratize access to global resources, establishing India as a major participant in the AVGC-XR industry.

Looking forward

The National Centre of Excellence is a significant advancement for India’s AVGC-XR sector. The center, which combines education, start-up support, and international outreach, will be a cornerstone for driving economic growth, creating employment prospects, and cementing India’s position as a global content powerhouse.

More than 70 per cent of the AVGC revenues comes from AVGC services to the global markets. The AVGC sector in India is poised to drive a similar growth to what the IT industry saw 20 years ago. Audiovisual exports in the next five to 10 years will be amongst the top 5 sectors contributing to the
Indian GDP.