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Industry backs Maharashtra’s AVGC-XR push; policy targets ₹50,000 cr investments, 2 lakh jobs
The state already accounts for about 30% of India’s animation studios, with Mumbai and Pune hosting over 295 studios and 20 specialized educational institutions. The new policy aims to expand the state’s AVGC-XR sector from its current size of ₹25,000 crore to ₹50,000 crore in 5 years
AVGC-XR will be integrated into school curriculum, and a skill advisory committee—comprising industry experts, academics, and government officials—will design modules and training frameworks.
The Maharashtra cabinet approval of a ₹3,268-crore policy to boost the state’s Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector, is being hailed by industry leaders as both timely and transformative. The policy—the first of its kind in Maharashtra—seeks to attract investments worth ₹50,000 crore and generate 200,000 high-tech jobs over the next 25 years, positioning the state as a global hub for digital content creation.
Industry veterans welcomed the move as a turning point. Ashish S. K., Founder of Punnaryug Artvision Pvt Ltd and Founding Director of IICT, described the new framework as “futuristic and relevant,” noting that until now AVGC-XR was treated as a subset of the state’s IT-ITES policy.
“The policy has ensured the engagement and growth of all stakeholders, from large studios to freelancers. Its emphasis on intellectual property creation, monetization, and the establishment of a growth and startup fund is a well-thought-out step that will fuel opportunities in the global digital content economy,” he said. He also underlined the importance of IICT’s role in nurturing students, researchers, and startups in emerging technologies.
The AVGC-XR policy would usher in wide-ranging interventions, including incentives, concessions, land reservation, and digital infrastructure upgrades. Plans are underway to establish AVGC-XR parks, clusters, studios, virtual production facilities, testing labs, and shared infrastructure, extending beyond Mumbai and Pune to tier 2 and tier 3 cities such as Nashik, Nagpur, Kolhapur, Satara, and Chhatrapati Sambhajinagar. Companies in the sector will benefit from relaxed stamp duty, lower power tariffs, and the freedom to operate studios round-the-clock.
Akshat Rathee, Co-Founder and Managing Director of Nodwin Gaming, called the initiative “nothing short of historic.” “With a ₹3,268-crore outlay, 24x7 operational freedom, and world-class AVGC-XR parks, Maharashtra has made it clear that India will create digital content at scale. The targets of ₹50,000 crore in investments and 2 lakh direct jobs provide a roadmap to make Maharashtra the global epicenter of gaming, esports, and immersive tech. This is where policy meets ambition,” Rathee remarked.
Maharashtra already accounts for about 30% of India’s animation studios, with Mumbai and Pune hosting over 295 studios and 20 specialized educational institutions. The new policy aims to expand the state’s AVGC-XR sector from its current size of ₹25,000 crore to ₹50,000 crore in five years, targeting an annual growth rate of 25%.
To support this ambition, the government will set up a critical infrastructure fund to ensure road connectivity, dedicated power and water supply, and treatment plants for the upcoming AVGC-XR parks. Incentives available to private IT parks will now also be extended to AVGC-XR projects.
A major thrust of the policy is skill development. AVGC-XR will be integrated into school curriculum, and a skill advisory committee—comprising industry experts, academics, and government officials—will design modules and training frameworks. With support from the Centre, the state has already launched a satellite campus of the Indian Institute of Creative Technologies (IICT) at the NFDC premises in Mumbai, offering 18 specialized courses for students and professionals in the sector.
The esports community, too, expressed optimism. Rohit Jagasia, Founder of Revenant Esports, said the policy could not have come at a more crucial moment. “This is a great initiative that arrives just as the industry is undergoing a shift due to changes in the Online Gaming Bill. It will help create world-class infrastructure, nurture esports talent, and attract investments from across the globe. By giving players and creators a platform to turn passion into profession, the Maharashtra government has fueled the next wave of growth in the creator economy,” Jagasia noted.
With Bollywood’s creative ecosystem already anchored in Mumbai and Pune, stakeholders say the state’s AVGC-XR policy will not only consolidate Maharashtra’s leadership in India’s media and entertainment landscape but also push it onto the global stage. For industry players, the cabinet’s move is more than a policy announcement—it is a signal that the state intends to back the sector with long-term vision and tangible infrastructure.
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