The Maharashtra Cabinet on Tuesday approved the Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) Policy 2025, a landmark initiative aimed at transforming the state into a global hub for the creative and digital entertainment industry. The Cabinet meeting, chaired by Chief Minister Devendra Fadnavis, cleared a comprehensive plan with a financial outlay of ₹3,268 crore, setting ambitious targets for long-term growth up to the year 2050.
Industry and Infrastructure Status
The policy grants industry and infrastructure status to the AVGC-XR sector and is expected to attract investments worth ₹50,000 crore over the next two decades. Officials estimate the initiative will generate nearly two lakh new employment opportunities in high-technology fields such as animation, visual effects, gaming, immersive media, and metaverse applications. The move is also seen as a decisive step towards making Mumbai the entertainment and tourism capital of India.
Maharashtra Leads the Sector
Currently, Maharashtra leads the country’s AVGC-XR sector, hosting more than 295 studios, which account for 30% of India’s total. The state also has over 20 educational institutions offering specialized courses in this field, primarily located in Mumbai and Pune. Experts note that the industry is expanding rapidly across India, with the national media and entertainment market projected to grow from $27 billion today to over $100 billion by 2030.
World-Class AVGC-XR Parks Planned
The new policy envisions the development of world-class AVGC-XR Parks in cities such as Mumbai, Navi Mumbai, Pune, Nashik, Chhatrapati Sambhajinagar, Kolhapur, Satara, and Nagpur. These hubs will feature advanced infrastructure, including motion capture studios, post-production labs, virtual production facilities, sound recording units, and high-performance rendering farms. AI-based animation, real-time rendering, and metaverse technologies will also be integrated to meet global industry standards.
Indian Institute of Creative Technology
The government has announced the creation of an Indian Institute of Creative Technology (IICT) to serve as the nodal body for research, training, and innovation in the sector. A dedicated Maharashtra AVGC-XR Skill Advisory Committee, comprising industry leaders, academic experts, and trade representatives, will also be formed to ensure a steady supply of skilled manpower.
Investment Incentives and Support
To attract domestic and international investment, the policy allows 24x7 operations for AVGC-XR firms, grants the industry essential service status, and facilitates single-window clearances through the MAHITI and MAITRI portals. The government has also earmarked a ₹200 crore WAVES Participation Fund and a ₹300 crore startup support fund to encourage local entrepreneurs and boost innovation.
Financial Outlay and Implementation
In its initial phase between 2025 and 2030, the state will invest ₹308 crore, followed by ₹2,960 crore until 2050. An additional ₹100 crore has been allocated for the next financial year to fast-track implementation.
Boost from WAVES 2025 Conference
The policy builds on momentum from the recently held WAVES 2025 international conference in Mumbai, where investment agreements worth ₹8,000 crore were signed. Officials believe this initiative will strengthen Maharashtra’s creative economy and help the state achieve its long-term goal of becoming a $1 trillion economy.
Government’s Vision
“The AVGC-XR sector offers immense opportunities for innovation, employment, and global investment. With this policy, Maharashtra is ready to emerge as a global destination for creative industries,” the state government said in a statement.
