Maharashtra Unveils AVGC-XR Policy to Boost Tech and Job Creation
The Maharashtra cabinet has approved a new policy aimed at attracting significant investments and creating thousands of jobs in the AVGC-XR sector, positioning Mumbai as a hub for advanced technology and entertainment.
AvgcxrMaharashtraTechnologyJob CreationInvestmentReal Estate MumbaiSep 16, 2025
This is a crucial step towards making Mumbai the capital of the entertainment and tourism sector, as well as the Media, Entertainment, and AVGC-XR sector. Fadnavis emphasized that the sector has been recognized as an industry and infrastructure sector, highlighting its importance.
The policy is designed to bring in investments of about Rs 50,000 crore over the next 20 years and generate two lakh jobs in high-technology fields. The plan has been drawn up until 2050 with an outlay of around Rs 3,268 crore.
Fadnavis described the AVGC-XR sector as a vital part of the country’s growing media and entertainment industry. “This sector is growing rapidly in India. The Media and Entertainment market is estimated to expand from the current $27 billion to more than $100 billion by 2030. Therefore, it is expected that more than 30 lakh direct jobs and more than 51 lakh 50 thousand indirect jobs will be created in this sector in India,” he said.
The policy aligns with the Maharashtra Economic Advisory Committee’s vision of making the state’s economy worth $1 trillion. Recently, the Central government organized the Waves 2025 international conference in Mumbai, where 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 more than 295 studios in this field, accounts for nearly 30 per cent of India’s AVGC-XR studios. Mumbai and Pune also have 20 institutions offering training in animation, visual effects, and gaming. The state had earlier recognized AVGC-XR as an emerging industry under its Information Technology and IT-enabled services Policy 2023.
Officials noted that AVGC-XR technology is now widely used in 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.
“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 terms of this sector. For this, various institutional units will be encouraged under this policy. The Indian Institute of Creative Technology (IICT) will act as the lead institution in this sector,” Fadnavis said.
The state also plans to develop dedicated AVGC-XR parks equipped with modern infrastructure to support startups, MSMEs, and larger companies in the industry.
Frequently Asked Questions
What is the AVGC-XR Policy 2025?
The AVGC-XR Policy 2025 is a policy approved by the Maharashtra cabinet to attract investments and create jobs in the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector.
How much investment is expected from this policy?
The policy is expected to attract investments of over Rs 50,000 crore over the next 20 years.
What is the expected job creation from this policy?
The policy is expected to create two lakh jobs in high-technology fields.
Which states have already rolled out similar policies?
Several states, including Karnataka, Telangana, Rajasthan, Kerala, and Madhya Pradesh, have already rolled out similar policies.
What is the role of the Indian Institute of Creative Technology (IICT) in this policy?
The Indian Institute of Creative Technology (IICT) will act as the lead institution in the AVGC-XR sector, promoting innovation, entrepreneurship, and intellectual property creation.
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