India ‘ s federal budget for 2026 once again directed the spotlight towards the animation, visual effects, games and cartoon industry (AVGC) and the regulatory budget did not provide direct funding or clear regulatory support for competitive games, but it nevertheless generated cautious optimism for the country ‘ s electric race and game community.
India’s finance minister, Sitaraman, positioned the AVGC industry as a key pillar of India’s growing “Orange economy”, noting that the industry was expected to require 2 million professionals by 2030. To meet this need, the Government announced its support for the Indian Institute of Creative Technology in Mumbai, which will establish the AVGC content creators ‘ laboratory in 15,000 secondary schools and 500 tertiary schools across India. In addition to skills development, the budget allocated Rs.12.2 trillion (approximately $13.5 billion) to digital infrastructure, which is expected to increase the 5G connection and reduce the delay in online games and electricity competitions. In addition, the Ministry of Youth Affairs and Sports will receive Rs. 44.8 billion (approximately US$ 495 million) to finance the establishment of a new Indian Sports Plan aimed at transforming India’s sports ecosystem over the next decade. Although the competition is not mentioned, stakeholders believe that a broader focus on leagues, talent development and sports science could ultimately benefit the game.
However, policy uncertainty continues to permeate the online game industry. As of February 2026, the Online Game Promotion and Regulation Act (PROGA), enacted in August 2025, was still pending. The Supreme Court of India has joined cases from various High Courts to determine the unconstitutionality of the propaga ‘ s general ban on the game of poaching, rammy and so on. As no decision has yet been taken, the platform is in an open state. According to the petitioners, PROGA had been adopted in haste without adequate consultation, blurring the boundaries between skill and luck and pushing the player to an offshore platform. For its part, the Government of India claims that fraud, money-laundering and national security problems exist in the gold game industry, affecting more than 4.5 million consumers each year and causing losses of about Rs. 200 billion (approximately US$ 2.21 billion). While electric competitions and social games are still allowed, offenders face up to three years ‘ imprisonment and a fine of Rs. 100 million (approximately US$ 1106 million). Industry leaders generally agreed that the focus of the fiscal budget on AVGC was a step in the right direction, but stressed that there was still a lack of formal recognition and policy clarity in the electricity sector. Shiva Nandi, founder and CEO of Skyesports, an Indian electric competition company, stated that the Minister of Finance ‘ s interest in job creation in the Indian Creative Technology Institute and the AVGC area was a positive step towards structured career paths to play. While he stressed the practical benefits of electronic competition through the competition, he lamented its continued exclusion from formal policy discussions and called for a formal path and a clear framework.
Akshat Latti, Co-founder and Managing Director of NODWIN Gaming, emphasized that the AVGC area, in particular through the expansion of the Creative Laboratories and support for the Indian Institute of Creative and Digital Technology, was an important step towards strengthening the creative and digital talent base in India. These initiatives will help to expand the talent pool and accelerate original IP creation and high-quality game development. S8UL reports and 8Bit Creatives founder and CEO Animesh Agawal stated that the fiscal budget’s focus on AVGC clearly endorsed the rapid expansion of the game and the competition in India. The projected need for 2 million experts by 2030 highlights great opportunities and institutional and industry responsibilities for developing human resources. CyberPowerPC India’s Chief Operating Officer, Wishal Parek, considered budget support for the establishment of AVGC creators’ laboratories in schools and colleges to be an important step in preparing India’s future workforce. Achieving this vision requires a high-performance computing environment that matches global standards. The LVL Zero Incubator Incubator Manager, Sagar Nair, stated that the promotion of content creators ‘ laboratories in numerous schools and colleges demonstrated a strong commitment to the creative economy in India. At the same time, he stressed that skills were not enough and that they needed to be combined with incubators and clear entrepreneurship paths to drive creators to build unique intellectual property rights, compete internationally and lead to sustainable development.
