AP Government eyes growth in the gaming, animation industry

The State Government is working on introducing and implementing a new policy, targeting the AVGC-XR (animation, visual effects, gaming, comics, and extended reality) sector in the $531 billion global industry by 2030. If executed with precision, the policy will position AP among the leading States of the gaming and animation industry, such as Telangana, Karnataka, Maharashtra, and Madhya Pradesh. It might even attract global clients such as Hollywood, seeking to leverage the state’s resources.

Representatives from the Andhra Pradesh Digital Technology Industry (APDTI) and the Andhra Pradesh VFX Animation Gaming Association met with State officials to emphasize the need for the policy. APDTI Network Director, Sreedhar Kosaraju one of the representatives who held a discussion with the government on the policy to attract global players told The Hindu that building an AVGC/gaming corridor in Visakhapatnam has been suggested to be implemented to progress the growth.

According to sources, the draft for the policy is nearly complete. A meeting to gather insights and suggestions was conducted with stockholders, entrepreneurs, and key officials. Following a workshop with stakeholders in the relevant sector, the policy will be refined and finalized before its official announcement.

The policy is geared to have several aims such as:

Attracting AVGC-XR companies to the State
Increasing employment opportunities
Retaining the creative talent that is migrating to different cities like Bangalore and Hyderabad
Creating a gaming corridor in Visakhapatnam

The statistics show that almost 15% of the AVGC-XR CEOs and employees working in the gaming and animation industry are from AP. The Director further explained that the State has a cost advantage of 30-40%, compared to Hyderabad and Bangalore. Provided that the policy is executed correctly, the State will retain the talent. Because the setup for this infrastructure is costlier than the amount required by IT companies, subsidies for the infrastructure for the sector have been purchased.