Karnataka's New Initiative: Paving the Future of AVGC in an AI-Driven Economy

Karnataka is setting the stage to become a leader in the AI-driven creative economy, chiefly through innovations in the Animation, Visual Effects, Gaming, and Comics (AVGC) sector. At the closing ceremony of Bengaluru GAFX 2026, State Minister Priyank Kharge outlined strategic initiatives to push the state towards original intellectual property (IP) creation.

Kharge highlighted that the AVGC industry represents more than just animation and gaming; it stands as a symbol of India's cultural influence and digital exports. With AI revolutionizing animation and gaming workflows, the Minister noted a 25-40% cost reduction in animation processes, offering small studios a chance to compete on a global scale.

In response to ethical concerns like employment disruption and IP ambiguity, Karnataka plans to introduce a Responsible Use of AI framework. Additionally, structured IP guidelines and the extension of the Elevate programme will support further innovation and skill development, solidifying Karnataka’s innovative lead in the AVGC sector.