At the 26th edition of the Bengaluru Tech Summit, the Karnataka government released the draft of new policies aimed at creating 30,000 jobs over the next five years in animation, visual effects, gaming, comics, and extended reality (AVGC-XR) sectors. The Karnataka AVGC-XR Policy 3.0 (2023-28) aims to create a large talent pool of workforce in the sector.
A skill advisory committee will be set up that will also work towards imparting industry ready skills partnering with the industry and academia. The government also will be looking at developing a special economic zone AVGC-XR and setting up business incubators focusing on the sector.
"The AVGC-XR Policy establishes Karnataka as a hub for Animation, Visual Effects, Gaming, and Comics, emphasizing sustainability and inclusivity" said Priyank Kharge, Minister for Information Technology & Biotechnology and Rural Development & Panchayat Raj.
The policy aims to provide financial support through setting up of dedicated AVGC Venture Fund (KITVEN AVGC FUND) and by providing early stage startups in the sector assistance through supporting the costs of marketing, infrastructure, and compliance. The government will also provide grants for production of animation films, series, VR/AR/VFX projects, and game development, along with regulatory sandboxing to innovate in the sector.
With the startups in the state valued at nearly $64 billion and the startup ecosystem ranked 8 the in the global start up ecosystem index 2023. Pointing out the preference of Karnataka as the favored destination of global companies, with nearly 38% share in the total FDI inflows, "Our commitment to skilling, Centers of Excellence, the Global Innovation Alliance (GIA), and Beyond Bengaluru reflects our dedication to global collaboration and ecosystem development," Kharge added.
Along with the AVCG policy, the government also announced a new biotech policy. With the state biotech sector reaching $27.1 billion in 2022, Karnataka has over $200 million invested in biotech R&D according to the government. The new policy aims at further accelerating the sector envisaging the future growth. The policy aims at developing high-tech Biotech clusters (5–10 acres) for setting up manufacturing units and support startups and small and medium sized companies to operate through enabling a plug and play model in these clusters. Interestingly the government is also looking at making the state a 'Global Clinical Trials Hub'.
From providing a ₹50,000 per month fellowship for 1 year to students and professionals to pursue enterprising ideas in the sector to investment subsidy of up to ₹10 crore to starting manufacturing units, the new policy has rolled out further incentives to make the sector lucrative for entrepreneurs to dip their toes.