About AVGC Sector Role in Innovation: UPSC Current Affairs

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Context:

The Union Cabinet approved the establishment of a National Centre of Excellence (NCoE) for Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) in Mumbai.

Details

The AVGC sector, which stands for Animation, Visual Effects, Gaming, and Comics, is becoming the future of the media and entertainment world. In India, movies like Baahubali and RRR have taken historic and fantasy themes to the next level, inspiring films like PS1 and Kalki.

According to the FICCI-EY 2024 report, India has the second-largest fan base for anime in the world and is set to contribute 60% of the global growth in anime interest in the coming years. To boost this progress, the Union Cabinet has approved the establishment of a National Centre of Excellence (NCoE) for AVGC in Mumbai.

About the NCoE

The National Centre of Excellence (NCoE) will be set up as a Section 8 Company under the Companies Act, 2013, in collaboration with major industry bodies like the Federation of Indian Chambers of Commerce & Industry (FICCI) and the Confederation of Indian Industry (CII).

The idea was first announced in the 2022-23 Union Budget. NCoE aims to develop top talent for both India and the global entertainment industry. It will also be known as the Indian Institute for Immersive Creators (IIIC) and will follow the model of prestigious institutes like IITs and IIMs.

Key objectives of the NCoE

Creating original Indian intellectual property (IP)
Using India’s rich cultural heritage in modern media
Promoting innovation and skill development
Supporting education and research
Developing a hub-and-spoke model for training and innovation
Helping startups with dedicated funding for research

Significance of the NCoE

India's animation industry is booming, because of the rising demand for films, visual effects, and gaming content. According to the FICCI-EY Report 2023, the industry is growing at 25% annually. With internet access increasing and data rates among the lowest in the world, the AVGC sector is set to grow rapidly.

Films like RRR, Baahubali, The Lion King, and Avatar have shown the massive potential of animation and immersive technology. Immersive technologies like Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR), and 3D animation are the future of content creation. NCoE will help students learn these technologies and use them to create content based on Indian culture.

It is expected to generate 5,00,000 jobs and offer world-class infrastructure similar to IITs and IIMs. Students will gain practical skills through hands-on learning and internships, making them job-ready right after graduation. It will promote collaboration between governments, academia, and industries to drive research and innovation in immersive technologies.

About Animation, Visual Effects, Gaming, and Comics (AVGC) Sector

It is growing rapidly and is becoming a key part of the media and entertainment industry, offering many opportunities for creative and technical people. The country is now among the top five gaming markets worldwide. India contributes about $2.5-3 billion to the global AVGC market, which is valued at $260-275 billion.

By 2025, India's AVGC sector has the potential to capture 5% of the global market, which would be worth around $40 billion. This sector is also expected to create around 1,60,000 new jobs by then.

Significance of the AVGC Sector

This industry has the potential to create thousands of jobs in India. It’s estimated that the AVGC sector could generate over 5,00,000 jobs in the next few years.
Indian talent in animation and VFX is being recognized worldwide. Indian studios are working on international projects, contributing to movies and games globally.
Through animation and comics, India can showcase its rich culture and history to the world. Indian myths, folklore, and history can be turned into amazing content for global audiences.
The AVGC sector contributes to the economy by creating new businesses, especially startups. It also attracts foreign investment because of the lower production costs in India.

Challenges

There is a lack of trained professionals in this field. Many people working in AVGC need more specialized training to meet global standards.
The technology needed for high-quality animation and VFX is expensive. Many studios cannot afford the latest equipment and software.
Despite the growth, there is still limited investment in AVGC from both private companies and the government. This slows down the development of the industry.
The illegal distribution of movies, games, and comics harms creators and companies by reducing their earnings.

AVGC Promotion Task Force Report

The government set up the AVGC (Animation, Visual Effects, Gaming, and Comics) Promotion Task Force in April 2022. It was led by the Secretary of the Ministry of Information and Broadcasting, with members from other ministries.

Key Recommendations

reate a dedicated mission to boost the AVGC sector, with a specific budget.
Launch a “Create in India” Campaign to focus on creating content in India for both Indian and global audiences.
Establish the International AVGC Platform and Gaming Expo to attract foreign investment, promote co-production agreements, and encourage innovation in the sector.
Set up a National Centre of Excellence (COE) to help the AVGC sector become a reference point for skills, education, industry development, and research.
Encourage schools to include AVGC-related subjects in their curriculum to help students develop creative skills and understand AVGC careers from an early age. Establish innovation hubs in schools to encourage creativity and skill development.
To make AVGC technologies accessible, the task force recommends promoting subscription-based pricing for small businesses and institutions.
The government should provide incentives for research and development, as well as for creating intellectual property (IP) in AVGC.
Establish a fund to support the creation of domestic content that promotes Indian culture and heritage worldwide.

Way Forward

Schools and colleges should offer more specialized courses in animation, VFX, and game design. This will help students gain the skills they need to succeed in the industry.
Studios need better access to modern technology. The government can help by providing financial support and encouraging private companies to invest.
The government should offer funding and resources to help new companies in the AVGC sector grow. This will create more jobs and lead to innovation.
Stronger laws are needed to stop piracy and protect creators' rights. This will encourage more people to enter the industry and ensure they get paid for their work.

Conclusion

The AVGC sector has a bright future, with the potential to create jobs, boost the economy, and promote Indian culture worldwide. With better training, investment, and support, India can become a global leader in animation, VFX, gaming, and comics.

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