Karnataka Reveals Draft Policy Proposal for Gaming, Animation and Biotech Sectors

By siliconindia  |  Friday, 01 December 2023, 08:54:48 AM IST

Karnataka Reveals Draft Policy Proposal for Gaming, Animation and Biotech Sectors
The Karnataka government has released a draft of new policies targeted at creating 30,000 job opportunities in the animation, visual effects, gaming, comics, and extended reality (AVGC-XR) sectors over the next five years. This was announced at the 26th edition of the Bengaluru Tech Summit. The Karnataka AVGC-XR Policy 3.0 (2023-28) focuses on building a large talent pool workforce in the sector.
The government plans to establish a skill advisory committee that will collaborate with the industry and academia to develop industry-specific skills that will make graduates job-ready. Additionally, the government is exploring the creation of a special economic zone AVGC-XR and setting up business incubators that focus on the sector. "The AVGC-XR Policy establishes Karnataka as a hub for Animation, Visual Effects, Gaming, and Comics, emphasizing sustainability and inclusivity", said Priyank Kharge, Minister for Information Technology & Biotechnology and Rural Development & Panchayat Raj.
The policy aims to provide financial support by setting up a dedicated AVGC Venture Fund (KITVEN AVGC FUND) and by providing early-stage startups in the sector assistance by supporting the costs of marketing, infrastructure, and compliance. The government will also provide grants for the production of animation films and series, VR/AR/VFX projects, and game development, along with regulatory sandboxing to innovate in the sector.
With the startups in the state valued at nearly $64 billion, the startup ecosystem ranked 8 in the global start-up ecosystem index 2023. Pointing out the preference of Karnataka as the favored destination of global companies, with nearly 38% share in the total FDI inflows, "Our commitment to skilling, Centers of Excellence, the Global Innovation Alliance (GIA), and Beyond Bengaluru reflects our dedication to global collaboration and ecosystem development", Kharge added.
The government of Karnataka has introduced a new biotech policy in addition to the AVCG policy. As per the government, the biotech sector in the state has already reached $27.1 billion in 2022 with over $200 million invested in biotech R&D. The new policy aims to accelerate the growth of the sector even further by developing high-tech Biotech clusters (5-10 acres) for setting up manufacturing units, and by supporting startups and small and medium-sized companies to operate by enabling a plug-and-play model in these clusters. Interestingly, the government is also aiming to make the state a 'Global Clinical Trials Hub'.
The newly introduced policy has brought in a host of incentives to make the sector more attractive for entrepreneurs. These incentives include a fellowship of Rs 50,000 per month for a year to students and professionals pursuing enterprising ideas in the sector, as well as an investment subsidy of up to Rs 10 crore for those starting manufacturing units.

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