Vidarbha's Emerging AVGC-XR Hub: Maharashtra’s ₹3,268 Crore Creative Tech Push

thenewsdirt
Sep 19
8 min read

Maharashtra's Animation, Visual Effects, Gaming, Comics and Extended Reality sector has emerged as a transformative force for economic development, particularly in the Vidarbha region. The state cabinet's approval of the AVGC-XR Policy 2025 on September 16, 2025, represents one of the most significant technology investments in central India's industrial landscape.

The comprehensive policy framework establishes Nagpur as a designated hub within an eight-city network of specialised AVGC-XR parks across Maharashtra. The approved Rs 3,268 crore investment plan was designed to attract Rs 50,000 crore in private investments over the next 25 years and create 200,000 high-technology jobs.

This initiative positions Vidarbha at the centre of India's rapidly expanding creative technology sector, which currently employs 260,000 people nationwide and is projected to generate 2.3 million direct jobs by 2032. The sector's value is expected to grow from the current $3 billion to over $26 billion by 2030, representing an annual growth rate of 25-30%.

Policy Framework and Investment Structure

The Maharashtra AVGC-XR Policy 2025 operates through a phased investment approach spanning until 2050. The state government allocated Rs 308 crore for the initial five-year period from 2025 to 2030, followed by Rs 2,960 crore for the subsequent two decades from 2031 to 2050.

An additional Rs 100 crore provision was approved specifically for the 2025-26 financial year to accelerate implementation.

The policy establishes dedicated AVGC-XR parks in eight locations, including Nagpur, Film City Mumbai, Navi Mumbai, Pune, Nashik, Chhatrapati Sambhajinagar, Kolhapur and Satara. These parks will feature state-of-the-art infrastructure, including high-speed digital connectivity, motion capture studios, post-production laboratories, high-performance rendering farms, sound recording facilities and virtual production studios.

Sixty percent of land in Integrated Industrial Areas and Information Technology parks will be reserved for AVGC-XR activities, with the remaining 40 percent designated for residential, institutional and recreational purposes.

The sector has been granted essential service status, allowing 24x7 operations throughout the year while providing additional Floor Space Index benefits under the IT and ITeS Policy 2023.

Two specialised funds support the sector's growth, a Rs 200 crore WAVES participation fund and a Rs 300 crore startup fund for local entrepreneurs. The policy framework allows AVGC-XR enterprises to operate in any zone, including residential, commercial or industrial areas, provided they comply with prescribed safety norms.

National AVGC-XR Ecosystem and Institutional Development

The Animation, Visual Effects, Gaming, Comics, and Extended Reality sector represents a critical component of India's creative economy, which contributes nearly 8 percent of the country's employment. The sector's global market value is projected to exceed $800 billion by 2026, driven by rapid digital adoption and technological innovation.

India's AVGC-XR industry was valued at over $1 billion in 2021 and has the potential to capture 5 percent of the global market share worth $40 billion by 2025.

The sector encompasses diverse applications beyond entertainment, including healthcare, education, defence, marketing, agriculture and real estate.

The Government of India announced a $1 billion public-private fund to boost creators and enhance global competitiveness within the sector. Over 10 states, including Karnataka, Maharashtra, Telangana and Rajasthan, have introduced dedicated AVGC-XR policies with comprehensive incentives and infrastructure support.

The establishment of the Indian Institute of Creative Technology represents a landmark development in institutional capacity building. The institute, modelled after the Indian Institutes of Technology and Indian Institutes of Management, received Rs 392.85 crore in government investment.

Located in Mumbai with a permanent campus at Film City, IICT has formed partnerships with global technology companies including Google, Meta, NVIDIA, Microsoft, Apple, Adobe and WPP.

IICT offers 17 specialised courses across gaming, post-production, animation, comics and extended reality domains. The institute's inaugural batch of 300 students commenced classes in September 2025 at the National Film Development Corporation premises on Pedder Road.

The AVGC-XR sector's employment potential extends far beyond traditional media and entertainment roles. Most direct job positions encompass content developers, animators, pre- and post-production artists, pre-visualisation specialists, compositors and technical specialists. The industry demonstrates high growth rates with certain segments already expanding at 30-35 percent annually.

Maharashtra currently hosts 295 AVGC-XR studios, accounting for 30 percent of India's total capacity. The state also maintains 20 educational institutions providing specialised training in animation, visual effects and gaming in Mumbai and Pune.

The Maharashtra AVGC-XR Skill Advisory Committee, comprising industry experts, academics and association representatives, will guide workforce development initiatives.

The Indian Institute of Creative Technology serves as the lead institution in this skills development ecosystem.

Creative industries demonstrate strong earning potential, with creative occupations paying 88 percent higher wages than non-creative positions while contributing approximately 20 percent to India's overall Gross Value Added.

The sector's employment contribution of 8 percent significantly exceeds corresponding shares in Turkey, Mexico, South Korea and Australia.

Technology Integration and Infrastructure Development

The AVGC-XR parks in Vidarbha will incorporate cutting-edge technologies, including artificial intelligence-based animation, real-time rendering, immersive experiences and metaverse-related applications.

These facilities address industry demands for enhanced animation quality, virtual reality gaming experiences and the Extended Reality segment growth projected at 25.9 percent compound annual growth rate between 2020 and 2024.

The infrastructure development encompasses motion capture studios, virtual production units, AI-driven animation tools, rendering farms and immersive metaverse applications. These technological capabilities support the sector's transition toward real-time technology adoption, with expectations that 50 percent of Indian animation and visual effects studios will adapt to real-time technology by 2025.

Digital connectivity infrastructure receives priority attention within the policy framework. The government plans to establish critical infrastructure funds for road connectivity, dedicated power supply, water resources, sewage treatment facilities and last-mile connectivity. Incentives applicable to private Information Technology parks under existing policies extend to AVGC-XR park developments.

The World Audio Visual and Entertainment Summit held in Mumbai from May 1-4, 2025, attracted participants from over 90 countries with more than 10,000 delegates. The summit generated business deals worth over Rs 1,300 crore with creators and filmmakers across India, demonstrating the sector's commercial viability and international appeal.

Maharashtra's AVGC-XR sector annual turnover currently stands at Rs 25,000 crore, with targets to increase this to Rs 65,000 crore within five years through a projected annual growth rate of 25 percent.

The policy aims to facilitate the sector's growth from Rs 25,000 crore to Rs 65,000 crore over the next five years, representing the state's commitment to establishing itself as a global destination for animation, gaming and extended reality technologies.