Union Budget of 2026-2027, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, has unveiled the Government’s plan to push India’s gaming industry by allocating significant financial support to the Animation, Visual Effects, Gaming, and Comics (AVGC) sector.
Why the Gaming Focus Matters
According to the announcement, the government will be setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges across India to prepare students for opportunities in gaming and creative technologies. This sector has long been considered one of India’s fastest-growing digital markets, with an ever-growing base of players and developers. Reports suggest that the industry built around gaming has witnessed significant growth along with the broader AVGC ecosystem, and the government’s focus on the same early on helps create industry-ready talent as we ride the wave of growth.
During her speech, the FM announced this sector to be a core focus point for the Government’s vision. Creative and idea-driven economy built around digital content, including but not limited to gaming, has been dubbed as “Orange Economy” and the budget is planned to give the coming generations an early exposure to digital skills to generate a robust talent pipeline for gaming and digital content creation.
What will Creator Labs do?
The planned AVGC Content Creator Labs will be designed to offer practical and industry-relevant training to help build the anticipated pipeline for gaming and digital content creation:
- Game design and development, including coding, graphics, and narrative design.
- Animation and visual effects development for gaming and digital media.
- Digital content production skills for content creators of tomorrow.
Industry Reaction and Skill Development
Leaders of India’s AVGC ecosystem have welcomed the new focus area with arms wide open. The shortage of skilled professionals in the country can often stall the growth, and having Government-backed industrial skill development initiatives will give confidence to the leaders as well as investors. Not only does this initiative address the shortage of skilled professionals, but gives the country an edge in taking an early entry into the leading industry of tomorrow.