CHENNAI: The state will shortly unveil an industry-driven policy to develop its animation, visual effects, gaming, comics and extended reality (AVGC-XR) ecosystem, with a design that prioritises talent creation and ease of doing business over pure financial incentives, said IT Minister Palanivel Thiaga Rajan on Wednesday.
Speaking on the sidelines of India Game Developer Conference (IGDC) in Chennai, Thiaga Rajan said the policy cleared by the IT department and awaiting finance approval marks a shift in how the state nurtures emerging tech sectors.
“Unlike other policies that are mostly incentive-led, this one is centred on building talent,” he said.
The policy is anchored on education and skilling, infrastructure and shared resources, business-environment reforms, and targeted incentives.
It proposes embedding gaming, 2D/3D animation and XR modules at school and university level, establishing centres of excellence, creating shared-licence facilities for start-ups and studios, and setting up a facilitation cell to streamline approvals.
Thiaga Rajan said the approach reflects the nature of the AVGC-XR industry – “highly creative, high-margin, but not high-employment” – and the need to close the gap between creative skills and technical capability.
The minister flagged a broader transition in the jobs landscape as automation reshapes white-collar employment. Tamil Nadu has seen a 600% surge in registered start-ups in recent years, nearly half of them women-led.
“Large employers’ share of total jobs is declining. The explosion of start-ups is the counter-trend,” he noted.
Hosting IGDC in Chennai for the first time – and attracting Japanese gaming major Nintendo to attend – is part of the state’s bid to draw global studios and GCC investments into gaming and digital content.
Addressing concerns that Tamil Nadu’s Online Gaming Authority could curb innovation, he said the state adopted a “principles-based, not blunt-force” framework to regulate real-money gaming without affecting other categories.
At the event, the Game Developer Association of India (GDAI) launched its ‘India Gaming Vision 2035’, targeting $10bn in annual gaming exports, $100bn in value creation and 2 million jobs by 2035.
“India stands at the cusp of a creative leap,” said GDAI chairperson Sridhar Muppidi.