Highlights
- Establishing AVGC Creator Labs in 15,000 schools and 500 colleges with a ₹250 crore allocation.
- Targeting the "Orange Economy" to generate 20 lakh jobs and meet the 2030 demand for 2 million professionals.
- Shifting India from a content consumer to a producer of original Intellectual Property (IP) through early-stage skilling.
In a landmark push to transform India from a consumer of digital content into a global producer, Finance Minister Nirmala Sitharaman announced the establishment of "Creator Labs" in educational institutions across the country during the Budget 2026 gaming industry presentation. With a dedicated allocation of ₹250 crore, the government plans to set up these high-tech hubs in 15,000 secondary schools and 500 colleges, aimed at bridging the critical skill gap in the booming gaming, Animation, Visual Effects, Gaming, and Comics (AVGC) sectors.
The initiative, which industry insiders are hailing as a game-changer, signals the government's clear intent to turn the "Orange Economy,” a term used to describe the creative industries, into a viable career engine capable of generating around 20 lakh jobs. This Budget 2026 policy upgrade for the gaming industry comes at a pivotal moment for the Indian gaming market, currently estimated at between $3.7 billion and $4 billion, with projections suggesting it could surge to $10 billion by 2029.
Akshat Rathee, Co-founder and MD of NODWIN Gaming, described the move as a strong step toward building India’s creative pipeline. "The Union Budget 2026–27’s support for the Animation, Visual Effects, Gaming and Comics (AVGC) sector through the expansion of AVGC creator labs is a strong step toward building India’s creative and digital talent pipeline," Rathee stated. "The government’s backing of the Indian Institute of Creative Technologies (IICT), whose inauguration we were proud to be present for, reflects a clear commitment to equipping young Indians with future-ready skills across animation, gaming and storytelling."
This move links grassroots skilling directly to global competitiveness. "The Budget’s focus on AVGC is a very positive step for India’s creative and gaming ecosystem," Nitish Mittersain, Jt. MD & CEO of Nazara Technologies, stated. "Initiatives like setting up AVGC labs across schools and colleges and investing in large-scale skilling will help build strong grassroots talent and long-term industry capacity. This is not just about employment, it’s about creating original Indian IP.
Budget 2026 gaming industry
The proposed labs promise to be far more than standard computer rooms. The initiative aims to equip institutions with state-of-the-art infrastructure, including high-end PCs, VR headsets, and access to industry-standard game engines and tools. Vishal Parekh, Chief Operating Officer of CyberPowerPC India, noted that the rollout will create a surge in demand for high-performance computing environments.
"The Budget’s support for AVGC creator labs across 15,000 schools and 500 colleges marks a powerful step toward building a future-ready workforce," Parekh said. "Realizing this vision calls for access to high-performance computing environments that match global benchmarks. At CyberPowerPC India, we see this as a defining opportunity to equip the next generation with the tools they need to create, compete, and lead, fueling innovation while strengthening India’s emergence as a global creative and technology powerhouse."
The urgency for such skilling hubs is supported by hard data regarding the workforce required to sustain the sector's growth. Animesh Agarwal, Founder & CEO of S8UL Esports and 8Bit Creatives, noted that the industry will require about two million professionals by 2030. "Having built teams and businesses in gaming and esports over the years, I’ve seen first-hand how rapidly the AVGC sector is growing and how urgently India needs structured skilling to keep pace," Agarwal remarked.
This sentiment is echoed by industry bodies that have been advocating for early intervention in education. Manish Agarwal, Board Member of the Game Developer Association of India (GDAI), welcomed the move as a result of sustained engagement with policymakers. "The announcement of AVGC content creator labs in schools and colleges is a landmark step toward building India’s next generation of game designers and developers," he said. "Over the past few years, GDAI has been closely engaging with government stakeholders to help shape a long-term talent pipeline that starts at the school level and extends through higher education and industry readiness."
Experts believe that formalizing this education will also encourage entrepreneurship within the sector. Sagar Nair, Head of Incubation at LVL Zero Incubator, highlighted the potential for job creation beyond traditional employment. "The Finance Minister’s announcement reflects a strong commitment to India’s creative economy," Nair observed. "When skilling is paired with incubation and clear pathways to entrepreneurship, India can cultivate a generation of creators equipped to build original intellectual property and compete globally.
While logistical challenges regarding execution and teacher training remain, the overall sentiment is overwhelmingly positive. The budget has effectively recognized creative talent as a serious economic asset, positioning the creative economy as a long-term growth driver alongside manufacturing and technology.
