‘Most Indian states are keen to explore growth in orange economy’

ECONOMY – SECTORS

1 MARCH 2026

• India’s Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) sector is emerging as a key pillar of the country’s upcoming Orange Economy (creative economy).
• The sector could create over 20 lakh jobs by 2030.

Orange Economy

• The Orange Economy refers to industries based on creativity, intellectual property, culture and digital content
• This includes film, gaming, animation, design, music, digital media, and XR technologies.

Growth Potential

• Current size: Over $3 billion
• Expected to cross: $26 billion in the next five years
• Annual growth rate: Around 35%
• It is described as being in a “sunrise phase”, similar to how India’s IT sector grew rapidly in the 1990s.

Indian Institute of Creative Technologies (IICT)

• The Indian Institute of Creative Technologies (IICT) is government-backed institute modelled on IITs and IIMs
• It focuses on high-end training, research, and industry partnerships in AVGC-XR
• Its aim is to build skilled talent for this rapidly growing industry.

State Policies & Leadership

• Karnataka introduced India’s first AVGC policy over a decade ago followed by Maharashtra, Telangana, Kerala, Madhya Pradesh and Rajasthan
• Several other states are in the process of approving similar policies.

Key Challenge

• Talent development remains the biggest challenge.
• India historically did not integrate creative arts and sports deeply into school curricula.
• The industry needs skilled animators, game designers, VFX artists, coders, storytellers, and XR specialists.

Conclusion

• India’s AVGC-XR sector is a rapidly growing part of the Orange Economy, projected to generate significant employment and economic growth.
• With strong state policy support, institutional backing through IICT, and ecosystem development led by states like Karnataka, the sector holds immense promise, though talent development remains a critical challenge.