India to Open 15,000 Animation Labs in Schools by 2027

India is betting big on its creative youth with a sweeping plan to build 15,000 animation and gaming labs in schools across the country.

Finance Minister Nirmala Sitharaman unveiled the initiative in the 2026 Union Budget, partnering with the Indian Institute of Creative Technologies Mumbai to establish animation, visual effects, gaming, and comic content labs in secondary schools and colleges. The timing couldn't be more critical as the industry faces a shortage of 2 million skilled professionals needed by 2030.

The announcement comes just months after India banned real money gaming in August 2025, a regulatory shift that initially sent shockwaves through an industry serving 80 to 100 million users. Digital advertising, sponsorships, and payment platforms tied to gaming all took immediate hits.

But something unexpected is happening in the aftermath. The esports market, currently valued at $40 million, is now projected to grow 30 to 35 percent annually as companies pivot toward competitive gaming and casual formats. Gamers are spending more too, with average revenue per user jumping from just $2 in 2020 to $30 in 2024.

The government sees an opening. With over 500 million digital gamers nationwide, India has the user base but lacks the creators. Most animation and game development work currently goes overseas despite massive domestic demand.

The Ripple Effect

These new labs will do more than teach students to draw characters or code games. They're creating pathways into careers that didn't exist in most Indian cities five years ago, spreading opportunity beyond traditional tech hubs like Bangalore and Mumbai.

The budget also proposes a new National Institute of Design to address similar talent shortages in the design sector. Together, these initiatives signal a national commitment to what economists call the "orange economy," where creativity drives commerce.

For young Indians in towns and cities across the country, a school lab might become their first doorway into industries once accessible only to the privileged few with expensive equipment and training.

India isn't just recovering from a gaming industry reset; it's reimagining what its creative future could look like, one school lab at a time.