Maharashtra Cabinet Approves AVGC-XR Policy: A Leap Towards High-Tech Innovation
The Maharashtra cabinet has approved the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) Policy 2025, aiming to attract over Rs 50,000 crore in investments and create 2 lakh jobs in the state.
AvgcxrMaharashtraInnovationTechnologyInvestmentReal EstateSep 16, 2025
The decision was made during a cabinet meeting chaired by Chief Minister Devendra Fadnavis. He emphasized that this policy is a crucial move to position Mumbai as the capital of the entertainment and tourism sector, as well as the Media, Entertainment, and AVGC-XR sector. “The AVGC-XR sector has been recognized as an industry and infrastructure sector, which will significantly contribute to the state’s economic growth,” Fadnavis stated.
The policy is designed to bring in substantial investments and generate high-tech jobs. The plan, which extends until 2050, has an outlay of around Rs 3,268 crore. Fadnavis highlighted the rapid growth of the AVGC-XR sector in India, noting that the Media and Entertainment market is projected to expand from the current $27 billion to over $100 billion by 2030. This growth is expected to create more than 30 lakh direct jobs and over 51 lakh 50 thousand indirect jobs in the sector.
The policy aligns with the Maharashtra Economic Advisory Committee’s vision of making the state’s economy worth $1 trillion. The Central government recently organized the Waves 2025 international conference in Mumbai, where Memorandums of Understanding (MoUs) worth Rs 8,000 crore were signed. Several states, including Karnataka, Telangana, Rajasthan, Kerala, and Madhya Pradesh, have already rolled out similar policies.
Maharashtra, with over 295 studios in this field, accounts for nearly 30% of India’s AVGC-XR studios. Mumbai and Pune have 20 institutions offering training in animation, visual effects, and gaming. The state had previously recognized AVGC-XR as an emerging industry under its Information Technology and IT-enabled services Policy 2023.
AVGC-XR technology is now widely used in various sectors, including healthcare, education, marketing, defence, gaming, agriculture, and real estate. Examples include AR-VR medical simulations for patient care and medical training, immersive branding in marketing, defence simulations, and 3-D modelling with virtual tours in real estate. Fadnavis said, “There is a huge scope for innovation, entrepreneurship, and intellectual property creation in this sector. This can also increase the inflow of domestic and international investment into the state. Therefore, Maharashtra has a great opportunity to become a global destination in this sector.”
To support this vision, various institutional units will be encouraged under the policy. The Indian Institute of Creative Technology (IICT) will act as the lead institution in this sector. The state also plans to develop dedicated AVGC-XR parks equipped with modern infrastructure to support startups, MSMEs, and larger companies in the industry. These parks will provide a conducive environment for innovation and growth, further solidifying Maharashtra’s position as a leader in the AVGC-XR sector.
Frequently Asked Questions
What is the AVGC-XR policy?
The AVGC-XR policy is a strategic initiative by the Maharashtra government to boost the Animation, Visual Effects, Gaming, Comics, and Extended Reality sectors. It aims to attract investments and create high-tech jobs in the state.
How much investment is the policy expected to attract?
The policy is expected to attract investments of over Rs 50,000 crore over the next 20 years.
What sectors will benefit from AVGC-XR technology?
AVGC-XR technology will benefit various sectors including healthcare, education, marketing, defence, gaming, agriculture, and real estate.
What is the role of the Indian Institute of Creative Technology (IICT)?
The Indian Institute of Creative Technology (IICT) will act as the lead institution in the AVGC-XR sector, supporting innovation and growth.
How many jobs is the policy expected to create?
The policy is expected to create two lakh jobs in high-technology fields over the next 20 years.
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