(MENAFN- IANS) New Delhi, Nov 18 (IANS) India's media and entertainment sector is projected to grow at a compound annual rate (CAGR) of about 7 per cent, reaching approximately Rs 3,067 billion by 2027, the government said on Tuesday.

The government projects this ecosystem to scale up to $100 billion by 2030, moving from a content-consuming nation to a global creator and exporter of intellectual property, an official statement said.

The government has formally recognised the Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) sector as a key driver of growth.

AVGC Promotion Task Force projected the creation of around 20 lakh direct and indirect jobs in the coming ten years, while estimating that the sector could contribute to India's GDP through production, exports, and allied services.

The gross value-added (GVA) share steadily increased over the last decade, as India now offers a 40 to 60 percent cost advantage in animation and VFX services, supported by a large, skilled workforce.

This comparative edge attracted a steady inflow of international projects and positioned India as a preferred destination for global post-production work, the statement said. Currently, 25 per cent of total viewership for Indian OTT content originates from overseas audiences.

"This reflects not only the commercial appeal of India's creative output but also its expanding role in cultural diplomacy, as Indian stories continue to build emotional and cultural connections across continents," the statement said.

The sector is driven by digital innovation, youth-driven demand, and a surge in creative entrepreneurship, it said, adding that the Centre aims to strengthen domestic capability in animation, visual effects, gaming, and extended reality through investments in training, digital infrastructure, and innovation-driven institutions.

In May 2025, the Indian Institute of Creative Technologies (IICT) was formalised as a Section 8 company, which onboarded Google, YouTube, Meta, Adobe, Microsoft, NVIDIA, Wacom, and JioStar as industry partners to co-develop curricula, offer internships, and scholarships. Further, they support creative-tech startups through incubation and mentoring.

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