India’s AVGC-XR Policy and The New Media Park - Centre for Media and Policy Research

Maharashtra’s new AVGC-XR policy and the proposed ₹3,000 crore media park are set to transform India’s Animation, gaming, and immersive media sectors into a global market. Find out how:

Animation, gaming, and immersive media are no longer niche segments within the media and entertainment industry in India. CMPR’s research suggests they are fast becoming central pillars of the country’s creative growth story. As global demand for digital content, games, and virtual experiences rises, India is positioning itself as a competitive AVGC-XR hub. Maharashtra’s new AVGC-XR policy and the proposed ₹3,000 crore media park are key steps in this direction, aiming to move India from a service-driven model to a value- and IP-driven creative economy.

Why AVGC-XR Matters to India’s Creative Economy

The AVGC-XR sector, i.e., Animation, Visual Effects, Gaming, Comics, and Extended Reality, sits at the intersection of creativity and technology. It combines storytelling with extended reality technology, advanced software, and real-time engines. For India, this sector can offer three strategic advantages: employment at scale, export potential, and global cultural influence.

India already has a strong base in animation and VFX, primarily servicing international studios. However, immersive formats such as virtual reality, augmented reality, and mixed reality are expanding opportunities beyond outsourcing. The rise of immersive media in India reflects a shift towards experiential content across entertainment, education, retail, and simulation-based training.

India’s AVGC-XR policy and the Media Park Vision

Maharashtra’s AVGC-XR policy aims to capitalise on this creative economy momentum. A ₹3,000 crore media park is proposed, envisioned as an integrated ecosystem for content creation, production, and innovation. Unlike traditional film cities, this park is expected to focus on digital-first infrastructure: motion capture studios, virtual production stages, gaming labs, XR testing facilities, and post-production hubs.

The policy outlines incentives such as capital subsidies, tax benefits, and support for startups and MSMEs in the AVGC-XR space. By lowering the entry barriers and operational costs, the state aims to attract domestic studios and global players alike. This approach would reflect a broader recognition that the creative economy requires not just talent, but also fitting world-class infrastructure.

Job Creation, Exports, and Talent Development

One of the strongest arguments for investing in India’s AVGC-XR policy so far is employment. The sector creates a wide range of jobs, from artists and designers to programmers, sound engineers, and technical directors. As immersive experiences start to become mainstream, demand for skills linked to extended reality technology is expected to rise sharply.

Export potential has been another major driver. Indian animation and VFX services already contribute significantly to global film and OTT projects. With better infrastructure and policy support, CMPR data suggests India could move up the value chain drastically by exporting original games, animated IPs, and immersive content instead of only services.

Local talent development is also central to this vision. Media parks can serve as bridges between industry and academia, enabling students to train on production-grade tools and workflows used by studios worldwide.

What This Means for Studios, Educators, and Students

For studios, the AVGC-XR push signals reduced costs, better access to skilled talent, and opportunities to collaborate within a shared ecosystem. Smaller studios and startups, in particular, stand to benefit from shared infrastructure and this policy-backed support.

For educators, this shift demands curriculum upgrades. Traditional animation courses must now integrate real-time engines, XR pipeline, and interdisciplinary collaboration. For students, the message has become clear: future careers in the media and entertainment industry in India will now require both creative and technical fluency.

Gaps That Still Need Attention

Despite its promise, the AVGC-XR push faces several structural gaps. India currently lacks sufficient advanced faculty with industry and research experience in immersive technologies. Research and development capacity remains limited, especially in areas such as real-time rendering, haptics, and human-computer interaction.

Another critical gap is original IP creation. While India excels at execution, long-term growth depends on building franchises that are globally recognisable; in gaming, animatio,n and immersive storytelling. Without sustained investment in IP development, the creative economy risks remaining dependent on external markets.

Beyond Infrastructure to Capability Building

Maharashtra’s AVGC-XR policy and the new media park represent a strong commitment to the future of immersive media in India. However, infrastructure and incentives alone are not enough. To fully realise this potential of the creative economy, investment must be paired with long-term capability building; advanced education, research support, and IP-focused funding.

If India can align policy, talent, and innovation, AVGC-XR could become one of the most transformative forces within the country’s current media and entertainment landscape.

Author: Bilvraj Mangutkar