Esports misses out as India’s budget 2026 backs AVGC sector
India’s Union Budget 2026 puts the spotlight back on the Animation, Visual Effects, Gaming, and Comics (AVGC) sector, giving the country’s esports and gaming community a cautious sense of optimism, even though the budget didn’t offer direct funding or clear regulations for competitive gaming.
Talent push for AVGC
India’s Finance Minister Nirmala Sitharaman highlighted the AVGC sector as a key pillar of India’s growing “Orange Economy,” noting that the industry is projected to require two million professionals by 2030. To meet this demand, the government announced support for the Indian Institute of Creative Technologies (IICT), Mumbai, which will establish AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges nationwide. Beyond skilling, the budget allocated ₹12.2 lakh crore (approx. $135 billion) towards digital infrastructure, a boost expected to enhance 5G connectivity and reduce latency for online gaming and esports competitions.
In addition, the Ministry of Youth Affairs and Sports would get ₹4,480 crore (approx. $495 million) to fund the establishment of a new Khelo India Mission, which aims to change India’s sports ecosystem over the next ten years. Although esports was not specifically mentioned, stakeholders think that competitive gaming could eventually benefit from a wider focus on leagues, talent development, and sports science.
Regulatory uncertainty over online gaming
Despite these positives, uncertainty continues to loom over the online gaming industry. As of February 2026, the August 2025 Promotion and Regulation of Online Gaming Act (PROGA) is not implemented yet. In order to determine whether PROGA’s complete ban on real‑money gambling breaches constitutional rights for skill‑based games like poker and rummy, the Supreme Court has combined cases from several High Courts. Platforms are in limbo since a verdict has not yet been rendered.
PROGA, according to the petitioners, was hurried through without consultation, blurs the distinction between skill and chance, and is pushing players to offshore platforms, where usage has increased from 3.4 percent to 44 percent. The Centre argues in favour of the law, citing issues with fraud, money laundering, national security, and the yearly losses of approximately ₹20,000 crore ($2.21 billion) that impact 45 lakh consumers. Esports and social gaming remain allowed, but violations could bring up to three years in jail and fines of ₹1 crore (approx. $110,600).
Esports still missing from policy
Industry leaders expressed the budget’s AVGC focus is a step in the right direction, but stress that esports still lacks formal recognition and policy clarity. Speaking exclusively to SiGMA News, Shiva Nandy, Founder & Chief Executive Officer (CEO), Skyesports, highlighted how structured skilling can unlock sustainable growth for competitive gaming, while underlining the need for esports to be part of national policy conversations.
Nandy said, “The Finance Minister’s focus on IICT and job creation in AVGC is a positive step towards building structured career pathways in gaming. Our MoU with IICT is aimed at supporting this broader vision by connecting students with real‑world esports and gaming opportunities.”
Nandy further highlighted how esports in India is already generating tangible benefits through events like the Chennai Esports Global Championship and the Tamil Nadu CM’s Trophy. Despite this impact, esports is still absent from formal policy discussions. He stressed that India already has the players and audiences; what’s missing is a structured pathway and regulatory framework to help esports grow responsibly and contribute meaningfully to the country’s digital and creative economy.
He expressed, “Esports is missing from the policy conversation. India doesn’t lack players or audiences. What we need now is a formal pathway and a clear framework for esports so the ecosystem can scale responsibly and become a meaningful part of India’s digital and creative economy.”
Building India’s creative talent base
Akshat Rathee, Co‑founder & Managing Director (MD), NODWIN Gaming, emphasised that the AVGC sector, especially through the expansion of creator labs and support for the IICT, is a significant step toward bolstering India’s creative and digital talent base. He noted that these initiatives will equip young people with skills in animation, gaming, and storytelling, which are increasingly vital in the digital economy.
Rathee stated, “As organisers of large‑scale cultural platforms such as the NH7 Weekender and Comic Con India, we are constantly seeking skilled talent to shape immersive experiences, and initiatives like these will help widen that pool while accelerating original IP creation and high‑quality game development. Greater access to creative technologies will enable more homegrown, culturally relevant content to thrive.”
Animesh Agarwal, Founder & Chief Executive Officer (CEO), S8UL Esports and 8Bit Creatives, pointed out that the Union Budget’s focus on the AVGC sector is a clear acknowledgment of how fast gaming and esports are expanding in India. He emphasised the critical necessity for disciplined skilling to keep up with this growth, drawing on his experience creating teams and enterprises. The estimate that two million experts will be needed by 2030 highlights the enormous opportunity as well as the obligation of institutions and industry to develop talent.
Agarwal stressed, “Initiatives like these will not only create meaningful career pathways for young Indians but also help position India as a global hub for animation, gaming, and digital storytelling.”
Technology access and entrepreneurship
Vishal Parekh, Chief Operating Officer (COO), CyberPowerPC India, underscored how the Union Budget’s support for AVGC creator labs in schools and colleges is a major step toward preparing India’s workforce for the future. With the sector expected to need two million professionals by 2030, he sees this initiative as a way to boost job creation and open high‑value career opportunities in gaming, animation, and visual technologies.
Parekh noted, “With the sector projected to require two million professionals by 2030, this initiative can accelerate job creation and empower young Indians to pursue high‑value careers in gaming, animation, and visual technologies. Realising this vision calls for access to high‑performance computing environments that match global benchmarks.”
He stressed that achieving this vision requires access to high‑performance computing infrastructure that meets global standards. For CyberPowerPC India, this is an opportunity to provide the tools that will empower young creators to innovate, compete, and lead, ultimately strengthening India’s position as a global creative and technology hub.
Sagar Nair, Head of Incubation, LVL Zero Incubator, highlighted that the extension of content creator labs throughout schools and colleges demonstrates a strong commitment to India’s creative economy. He explained, “With the AVGC sector expected to require nearly two million professionals by 2030, the rollout of content creator labs across 15,000 schools and 500 colleges can expand early access to future‑ready skills and inspire students to pursue careers in animation, VFX, gaming, and comics.”
He emphasised that while skill alone is insufficient, it can enable creators to create unique intellectual property, compete internationally, and lead sustainable enterprises when paired with incubation and clear routes to entrepreneurship. This coordinated strategy may boost the talent pipeline, create jobs more quickly, and position India as a global centre for digital content and creative technologies.
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