Nagpur: The Second Capital of Maharashtra is gearing up for a major leap into the future as the State Cabinet on Tuesday approved the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) Policy 2025, a long-term blueprint running until 2050. With an estimated outlay of Rs 3,268 crore, the policy aims to attract Rs 50,000 crore in investments and create two lakh high-technology jobs in the next two decades.
The decision, cleared at a meeting chaired by Chief Minister Devendra Fadnavis in Mumbai, gives the AVGC-XR sector recognition as both an industry and an infrastructure sector, underlining the government’s intent to transform Maharashtra into the country’s creative-tech powerhouse.
Gold Rate
23 dec 2025
Nagpur in the spotlight
The government’s roadmap includes the establishment of dedicated AVGC-XR Parks in Nagpur, Film City (Mumbai), Navi Mumbai, Pune, Nashik, Chhatrapati Sambhajinagar, Kolhapur, and Satara. These hubs will be fitted with world-class facilities such as motion capture and virtual production studios, rendering farms, post-production labs, sound recording units, and AI-driven metaverse infrastructure.
Officials confirmed that 60% of land in Integrated Industrial Areas (IIAs) and IT Parks will be reserved for AVGC-XR activities, while the remaining 40% will be used for residential, institutional, and recreational facilities, creating integrated live-work ecosystems.
In a significant move, the sector will be granted essential service status, allowing operations 24×7 throughout the year. It will also enjoy benefits of additional Floor Space Index (FSI) under the IT & ITeS Policy 2023. Importantly, entrepreneurs will be allowed to set up AVGC-XR enterprises in any zone—residential, commercial, or industrial, without restrictions, provided they comply with labour and safety norms.
To ensure a steady supply of skilled professionals, the state will form a Maharashtra AVGC-XR Skill Advisory Committee with industry veterans, academics, and associations. The Indian Institute of Creative Technology (IICT) will be the lead institution in this initiative. In addition, a dedicated section on the Mahiti portal will provide sector-specific information, while the Maitri portal will act as a single-window facilitation hub for businesses.
Maharashtra already accounts for nearly 30% of India’s AVGC-XR studios, with over 295 studios and 20 institutions offering training in Mumbai and Pune. Industry estimates suggest that the AVGC-XR market, currently valued at $27 billion, is projected to cross $100 billion by 2030. Nationwide, the sector is expected to generate 30 lakh direct and 51.5 lakh indirect jobs.
Funding plan
Of the Rs 3,268-crore outlay, the state has earmarked Rs 308 crore for the first five years (2025–30) and Rs 2,960 crore till 2050. An additional Rs 100 crore has been approved for the ongoing financial year to kickstart implementation. Officials highlighted that the sector’s applications extend well beyond entertainment, finding use in healthcare, education, defence, agriculture, marketing, and real estate.
With this ambitious policy, Maharashtra is positioning itself as the epicentre of India’s digital creative revolution, and Nagpur, poised to house one of the largest AVGC-XR parks, will play a pivotal role in shaping the future of high-tech jobs and innovation.
