GAFX sector has potential to create 20 lakh jobs in next 5 years: Karnataka CM Siddaramaiah

Bengaluru: The Games, Animation and Visual Effects (GAFX) sector has the potential to create 20 lakh jobs in the next 5 years, and it generates employment across design, coding, storytelling, music and AI modelling, Karnataka Chief Minister Siddaramaiah said.

Inaugurating the seventh edition of Bengaluru GAFX-2026 here on Friday, he said the GAFX sector is not only an economic opportunity, but also a civilisational opportunity.

The state is positioning itself at the forefront of the Orange Economy. The CM said Karnataka’s vision for the AVGC-XR (Animation, Visual Effects, Gaming, Comics, and Extended Reality) sector rests on building a large and future-ready talent pipeline; strengthening infrastructure and production ecosystems; supporting startups and original intellectual property; expanding opportunities beyond Bengaluru; and building global partnerships.

The State will expand industry-aligned curriculum, promote certification programmes and strengthen academia-industry collaboration. Karnataka is currently implementing the third AVGC-XR Policy for the period 2024–2029.

Talking about AI, the CM said Artificial Intelligence (AI) must remain a tool and not a substitute for human imagination. "Technology should amplify human potential, not erase it. The soul of storytelling is human emotion, something no algorithm can replicate in its fullness," he said, stressing the ethical usage of AI.

He also called upon industry leaders to invest in original content.

While we encourage innovation in animation and gaming, the CM stated that we must also uphold responsibility, promoting ethical game design that avoids glorifying violence, safeguards the mental well-being of children, and encourages creativity, critical thinking and positive social values.

Addressing the event, Deputy Chief Minister D K Shivakumar said Karnataka is also a global leader in the AVGC-XR sector, setting international benchmarks. "The AVGC Centre in Karnataka has supported landmark projects like KGF, and by 2028, we will train 50,000 students, with nearly 70 per cent of the workforce being creative professionals. Through this initiative, we aim to create over 30,000 high-quality jobs by 2028, while ensuring that these opportunities extend beyond major urban centres," he said.

The AVGC-XR sector is among the fastest-growing industries worldwide. India’s sector is already valued at over Rs 20,000 crore, growing at 25–30 per cent annually, with the potential to create more than 1.5 lakh new jobs in the coming years. Our state already hosts one of the strongest technology ecosystems in Asia. Karnataka is home to over 875 Global Capability Centres (GCC) units, a large concentration of digital media companies, and a deep technology talent pool, he added.

IT/BT Secretary N Manjula said Bengaluru contributes 20 per cent of the country's AVGC output, and is home to 300 AVGC-XR studios. "Our studios have also successfully integrated newer technologies like 3D animation, AR, VR, XR, computer-generated imaging and now AI too," she said.

Manjula also said the AVGC sector is projected to grow from 2 billion dollars currently to over 25 billion dollars in the next few years.

The three-day summit, with the theme 'Evolution Reloaded,' marks the next phase of growth for the AVGC industry.

A major highlight of GAFX 2026 will be its focus on AI and its transformative impact on animation and visual effects production. Dedicated AI tracks and curated sessions will explore how AI is fundamentally reshaping creative pipelines, from AI-assisted storyboarding and pre-visualisation to generative asset creation, procedural world-building, intelligent character rigging, motion synthesis, automated rotoscoping, smart compositing, and real-time rendering acceleration.