As the Union Budget puts a spotlight on the Orange Economy, Karnataka showcases a decade of policy foresight, global-scale execution, and creative leadership at the launch of Bengaluru GAFX 2026
Bengaluru, NFAPost: Barely a day after the Union Budget introduced the term “Orange Economy” into national discourse—prompting debates on creativity-led growth, cultural capital and digital content—the Karnataka government stepped forward with a quiet but decisive assertion: the state has not only understood this economy, it has been building it for years.
That message came through unmistakably at the announcement of Bengaluru GAFX 2026, the 7th edition of Asia’s largest conference and exhibition for Animation, Visual Effects, Gaming, Comics and immersive technologies. What might otherwise have been a routine event launch instead unfolded as a detailed exposition of Karnataka’s long-term strategy in the creative economy—one that predates the current buzz by nearly seven years.
From Policy Vision to Marketplace Reality
Speaking at the curtain-raiser, Priyank Kharge, Karnataka’s Minister for Information Technology, Biotechnology and Science & Technology, framed the moment with characteristic clarity.
“There is suddenly a lot of curiosity around the Orange Economy,” he said. “The irony is—we have been nurturing it here for seven years. The very term AVGC was created in Karnataka. We have been playing this game for quite some time.”
Karnataka remains the only Indian state to have rolled out three successive AVGC policies, the latest being the AVGC-XR Policy 2024–2029, which formally integrates Extended Reality, immersive media and AI-driven creative pipelines. Backed by a ₹150-crore allocation, the policy is widely regarded as the most comprehensive and future-ready framework for the creative sector in the country.
Industry leaders at the event pointed out that while many states are still drafting their first AVGC roadmaps, Karnataka is already refining execution.
“We are the only state with a third policy,” said Biren Ghose, President of the Association of Bangalore Animation Industry (ABAI). “No other state in India even has a second policy yet. Our role as industry is to convert policy into a living marketplace—and Karnataka has consistently enabled that.”
The Numbers Behind the Narrative
The state’s confidence is anchored in scale. Karnataka today contributes over 50% of India’s AVGC service exports, within a national market approaching $11 billion. Bengaluru alone hosts 300+ AVGC-XR studios, supported by a workforce of more than 15,000 professionals, alongside a robust freelance and gig economy.
The government has now set ambitious targets: 50,000 high-value jobs by 2028 and 20% of the global AVGC market share, positioning Karnataka not just as India’s creative hub, but as a global production and innovation centre.
The Centre of Excellence: A Silent Powerhouse
At the core of this ecosystem lies the AVGC Centre of Excellence (CoE)—a facility that has quietly shaped some of India’s biggest cinematic and digital successes. Operational for over six years, the CoE has executed 200+ domestic and international projects and incubated 100+ startups, providing access to infrastructure, licensed software, render farms and production-grade pipelines.
Its most significant contributions, however, have remained largely invisible due to confidentiality agreements.
“Take Baahubali, KGF Chapter 1 & 2, Pushpa, Kantara—almost every major Indian production has done work at our Centre of Excellence,” Kharge revealed. “But we can’t talk about it because of NDAs. By the time we are allowed to show it, the moment has passed.”
With CoE 2.0, Karnataka is now decentralising this capability—connecting Tier 2 and Tier 3 cities into a distributed creative network powered by cloud production, real-time engines, machine learning and XR tools. The move is designed to democratise access and unlock talent beyond Bengaluru.
Bengaluru GAFX 2026: ‘Evolution Reloaded’
Scheduled from February 27 to March 1, 2026, at Hotel Lalit Ashok, Bengaluru GAFX 2026 carries the theme “Evolution Reloaded”—signalling the next phase of creative growth where human imagination converges with AI, real-time rendering and immersive storytelling.
The three-day summit will feature:
- 200+ global speakers across 100+ sessions
- Making-of sessions from films like Kantara Chapter 1, Mahavatar Narasimha, Dhurandhar and Lokah
- A strong gaming and interactive media track
- Dedicated AI-for-VFX and virtual production sessions
- World-class masterclasses from studios such as Industrial Light & Magic, Netflix, Base FX and MrX
- Comics Street, board game launches, art challenges and a B2B Investor Connect
From Millets to Microchips
Beyond economics, speakers repeatedly returned to a deeper theme: cultural continuity. Ghose described Karnataka’s creative journey as moving “from millets to microchips”—a metaphor for balancing heritage with high technology.
Kharge echoed this sentiment, suggesting that AVGC tools could be used to reimagine Kannada literary classics for younger audiences—ensuring that cultural memory evolves alongside technology.
A State That Didn’t Wait for Permission
As the national conversation around the Orange Economy gathers momentum, Karnataka’s position is already well defined. Through sustained policy, institutional depth and industry partnership, the state has moved beyond pilot projects and proclamations to measurable global impact.
Bengaluru GAFX 2026, in that sense, is not merely a conference—it is a checkpoint in a longer journey. Or, as Biren Ghose aptly put it, the AVGC industry creates “oota for the soul.”
For years now, Karnataka has not just set the table—it has been quietly perfecting the recipe.
