India’s Animation and VFX Industry to Reach $2.2 Billion by 2026, Boosting Media & Entertainment Growth

India's Animation and Visual Effects (VFX) industry is set to grow from $1.3 billion in 2023 to $2.2 billion by 2026, increasing its share of the media and entertainment sector from 5% to 6%, as highlighted in a recent CII GT report. This growth is part of a broader expansion in the AVGC-XR sector, which includes Animation, VFX, Gaming, Comics, and Extended Reality, and currently represents 20% of the industry. -> Key Drivers Global Demand: Indian VFX studios are increasingly involved in high-profile international projects. Technological Advances: Adoption of AI, VR, and AR is enhancing the quality and scope of visual effects. Digital Content Surge: The rise of OTT platforms is fueling demand for animation and VFX. The online gaming industry is also expected to grow significantly, from $2.62 billion in 2023 to $4.6 billion by 2026, further contributing to the sector's expansion. This growth could positively impact companies like Tata Elxsi, Zee Entertainment, PVR, and Nazara Technologies, making them potential beneficiaries in the stock market.