Maharashtra Cabinet approves ₹3,268 cr AVGC-XR policy, will boost creator economy
The AVGC-XR Policy 2025 includes a range of incentives for industry stakeholders, including tax benefits, fast-tracked approvals, and dedicated infrastructure support.
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In a bold and forward-looking move to position Maharashtra as a global powerhouse in digital entertainment and infrastructure, the Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, on Tuesday approved the Maharashtra Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) Policy 2025. The policy comes with a substantial financial commitment of ₹3,268 crore, aimed at accelerating the state’s creative economy and strengthening its global appeal.
The decision was announced as part of a comprehensive strategy to boost the entertainment sector, seen by the state government as a key engine of development. This comes in the wake of CM Fadnavis’s remarks at the recently held WAVES summit, where he underscored the entertainment economy’s role in driving sustainable growth, innovation, and global partnerships.
As part of the AVGC-XR Policy rollout, the government is actively transforming two major projects:
500-acre Film City Revamp: Set to become a next-generation global studio ecosystem, the revamped Film City aims to provide world-class infrastructure for filmmakers, animators, and digital content creators.
120-acre Media and Entertainment City: This project will specialize in animation, visual effects (VFX), and gaming, offering state-of-the-art facilities and creating a dedicated space for digital storytelling and content innovation.
“We are building the future of global storytelling here in Maharashtra,” stated CM Fadnavis. “Our policies are not just visionary; they’re action-oriented and designed to attract international collaboration.”
The AVGC-XR Policy 2025 includes a range of incentives for industry stakeholders, including tax benefits, fast-tracked approvals, and dedicated infrastructure support. By simplifying bureaucratic processes and creating a favorable business environment, the policy aims to attract both domestic and international players to set up operations in Maharashtra.
The Chief Minister further emphasized that the entertainment economy is poised to be the next development engine, not just for the state but for the nation. “Our state is shaping the future of global storytelling. The government is committed to nurturing this transformation. We create enabling policies to attract global partnerships,” he added.
The cabinet’s approval of the AVGC-XR Policy forms a key part of Maharashtra’s broader development agenda. Alongside strengthening the digital entertainment sector, the government is simultaneously focusing on rural infrastructure enhancement, student welfare programs, agricultural advancements, and promoting green energy solutions.
Officials underscored that the upcoming months will witness tangible progress on the ground, with construction, industry partnerships, and policy implementation moving at pace to meet the ambitious vision.
Industry experts have welcomed the policy as a significant step towards making India a global content hub. The focus on building dedicated infrastructure and creating a business-friendly environment is expected to generate substantial employment opportunities, foster innovation, and elevate India’s competitive edge in the AVGC-XR sector.
As Maharashtra aims to attract more international collaborations, the AVGC-XR Policy positions the state at the center of the global digital entertainment revolution, promising a future of boundless creative possibilities.
