India’s soft power extends beyond its acclaimed feature films in various languages and its rich cultural heritage of arts, music, and dance. It also encompasses the creativity woven into major Hollywood productions processed in Namma Bengaluru and neighboring cities.Numerous innovative IT and high-tech companies specialize in film processing, graphics, and visual effects (VFX). These firms play a crucial role in transforming films into extraordinary experiences, filled with detailed settings, diverse characters, animations, and soundscapes, predominantly curated through sophisticated computer technologies and operated by skilled professionals blending technical expertise with artistic vision.

Moreover, it’s not just film and music paving the way in Bengaluru. The city is also witnessing a boom in the gaming industry, which is generating significant revenue and attracting a growing number of enthusiasts.

Karnataka’s IT-BT Minister, Priyank Kharge, is keen to establish Bengaluru and Karnataka as a central hub for e-sports, particularly given the sector’s rising popularity in India. E-sports is just one aspect highlighted at the Karnataka government’s GAFX 2025 conference, which commenced recently.

During the three-day event, which gathers industry leaders from entertainment, technology, gaming, and the creative arts, Kharge emphasized the government’s commitment to harnessing the potential of these sectors, equipping youth with necessary skills, and facilitating reskilling where required. This effort aims to ensure that India capitalizes on its demographic advantage in various sectors.

Kharge expressed optimism about hosting a National Esports Festival soon, with aspirations to make it one of the largest gaming festivals in the nation—and potentially in Asia. Projections from market research firm IMARC Group suggest that India’s esports market could reach $919 million by 2033, with a compound annual growth rate (CAGR) of 18.42% from 2025 to 2033.

The conference features the final match of a national championship, where the country’s top four esports teams compete in Counter-Strike 2. In his opening remarks, the minister encouraged the bright young talents in attendance to seize the opportunities presented by this gathering of ideas and skills.

Now in its sixth iteration, the GAFX 2025 conference is organized by Karnataka’s Department of Electronics, Information Technology, and Biotechnology in partnership with the non-profit organization ABAI. It focuses on the rapidly growing animation, visual effects, gaming, comics, and extended reality (AVGC-XR) sectors and is expected to draw over 20,000 participants.

Additionally, GAFX 2025 includes an investor connect initiative in which over 25 prominent investors engage with 50 AVGC-XR startups to explore funding and mentorship opportunities. These efforts aim to position Karnataka as a leader in this domain amidst increasing competition from states like Tamil Nadu, Telangana, Maharashtra, and Kerala.

Kharge envisions Karnataka becoming a key player in India’s aspiration to lead globally in this sector. “Our professionals are not just contributing to global projects—they’re at the forefront of them, offering unique perspectives and unmatched expertise. Indian artists are pivotal in delivering cutting-edge visuals for both domestic and international productions. Our contributions have positioned India as a premier destination for high-quality animation and VFX services,” he remarked.

The Karnataka government is also setting up a Global Innovation Alliance (GIA) to foster collaborations with nations like France, Australia, the UK, Scotland, Uzbekistan, and Italy in the AVGC-XR space. Last year, it allocated Rs 150 crore for its revised AVGC-XR policy for 2024-2029, targeting the creation of 50,000 jobs in the next three to four years.

“By leveraging the synergy between policy, policymakers, and the private sector, we can drive innovation, broaden opportunities for creative professionals, and ultimately create numerous jobs,” Kharge stated.

This approach not only aims to benefit individual creators but also seeks to strengthen the larger economic landscape through entrepreneurship, digital transformation, and sustainable growth in the sector.

The government is focused on cultivating a talent pool by establishing Karnataka as a center of excellence for AVGC-related skills, with a goal of having exports account for at least 80% of the sector’s total revenue. Plans for an AVGC-XR Park, offering production studios, incubation spaces, and research facilities, are also underway, according to Dr. Ekroop Caur, Secretary of the Department of Electronics, IT, BT, Science, and Technology.

“By 2029, we aspire to achieve a 30% enhancement in operational efficiency, a 20% increase in creative output, and a 25% growth in digital marketing outreach,” Dr. Caur shared.

With over 300 AVGC studios and more than 15,000 professionals, Karnataka leads India in gaming startups, making Bengaluru a prominent hub for next-generation game development. The AVGC-XR fund, India’s first of its kind, supports startups and SMEs with investments up to Rs 2 crore.