Powering the AVGC-XR Revolution

Key Takeaways

India's media and entertainment sector is a sunrise industry, projected to cross USD 100 billion by 2030, powered by digital innovation and creative-tech growth. The Indian Institute of Creative Technologies (IICT) is reshaping creative education through global partnerships with Netflix, Google, Microsoft, NVIDIA and others, building a world-class talent ecosystem. Indian VFX and animation studios now play a key role in global cinema, contributing to blockbusters like Avatar, Thor: The Dark World, and Game of Thrones.

India's Creative Economy at an Inflection Point

India's Media and Entertainment sector has emerged as one of the country's fastest-growing industries, powered by digital innovation, youth-driven demand, and a surge in creative entrepreneurship. Recognised by the government as a high-potential segment within the services economy, the sector is projected to grow at a compound annual rate of about 7 percent, reaching approximately ₹3,067 billion by 2027. The national outlook envisions this ecosystem scaling up to USD 100 billion by 2030, signalling a decisive shift from a content-consuming nation to a global creator and exporter of intellectual property.

The strategic vision for the sector rests on three core pillars:

Current initiatives aim to strengthen domestic capability in animation, visual effects, gaming, and extended reality through investments in training, digital infrastructure, and innovation-driven institutions. At the same time, inclusive participation across regional and linguistic boundaries remains a key policy priority, ensuring that creative opportunities extend beyond metropolitan clusters and into emerging cultural economies.

Economically, the Media and Entertainment sector contributes significantly to value addition and job creation, with its gross value-added share steadily increasing over the last decade. India offers a 40 to 60 percent cost advantage in animation and VFX services, supported by a large skilled workforce. This comparative edge has attracted a steady inflow of international projects and positioned India as a preferred destination for global post-production work. The sector's growing global resonance is equally visible in digital media, where nearly 25 percent of total viewership for Indian OTT content originates from overseas audiences. This reflects not only the commercial appeal of India's creative output but also its expanding role in cultural diplomacy, as Indian stories continue to build emotional and cultural connections across continents.

The AVGC-XR Revolution

This creative resurgence finds its most dynamic expression in the AVGC-XR sector, where technology, storytelling, and innovation converge to define the next chapter of India's media and entertainment growth. It is here that India's creative ambition meets its digital capability marking a shift from producing content for audiences to shaping experiences for the world.

Genesis and Institutional Framework

India's creative economy has entered a transformative phase with the formal recognition of the Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) sector as a key driver of growth. The policy journey gained momentum in 2022 with the constitution of the AVGC Promotion Task Force, established to formulate a comprehensive national strategy for nurturing India's AVGC-XR ecosystem as a global hub for creative technology and digital content production. The Task Force recommended the establishment of a National AVGC-XR Mission with a "Create in India" focus to position the country as a global hub for digital content creation and creativity. The AVGC Promotion Task Force's report projected the creation of around 20 lakh direct and indirect jobs in the coming ten years, while estimating that the sector could contribute to India's GDP through production, exports, and allied services.

IICT - From Vision to Action May 2025: Indian Institute of Creative Technologies (IICT) was formalised as a Section 8 company to advance India's AVGC-XR ecosystem through education, research, and innovation, transforming policy intent into institutional action. May 2025: IICT onboarded Google, YouTube, Meta, Adobe, Microsoft, NVIDIA, Wacom, and JioStar as industry partners to co-develop curricula, offer internships and scholarships, and support creative-tech startups through incubation and mentoring. July 15, 2025: Admissions opened for the first academic session featuring specialised courses across Gaming, Post-Production, Animation, Comics, and XR, designed in consultation with industry experts. The institute has also signed an MoU with the University of York (United Kingdom) to facilitate faculty exchange, collaborative research, and globally benchmarked curriculum development. July 18, 2025: The first IICT campus was inaugurated at the NFDC Complex, Mumbai, with an initial budget of ₹400 crore and a goal of training around 300 students in the inaugural batch alongside professional upskilling modules. August 30, 2025: The WaveX Media-Tech Startup Incubator was launched to nurture creative entrepreneurship. The first cohort included 15 startups, receiving mentorship, infrastructure, and access to global partners. October 7, 2025: IICT signed an MoU with FICCI and Netflix to co-create curricula, conduct masterclasses, and provide scholarships under the Netflix Fund for Creative Equity, integrating global content expertise into India's creative-education ecosystem.

One of the most significant milestones in India's AVGC-XR journey has been the creation of a dedicated institutional framework to nurture talent and innovation. The National Center of Excellence (NCoE) for AVGC-XR, approved by the Government in 2024, was envisioned as the country's apex body for training, research, and industry collaboration in animation, visual effects, gaming, and immersive media.

In 2024, the Indian Institute of Creative Technologies (IICT) was unveiled in Mumbai, Maharashtra, as the National Centre of Excellence for AVGC-XR. Set up as a Section 8 company-a not-for-profit entity that reinvests its resources into institutional growth-the institute brings together academia, industry, and government on one platform. By developing modern curricula, fostering joint research, and promoting global industry linkages, IICT is shaping a new generation of creators and innovators, positioning India at the forefront of the global creative economy.

Policy Momentum

Complementing national initiatives, several states are advancing the AVGC-XR vision through targeted policies and institutional frameworks. Karnataka has been one of the firsts to implement a dedicated AVGC-XR Policy 2024-2029, focusing on skilling, incubation, and global market competitiveness. Maharashtra, too, has taken significant steps with the approval of its AVGC-XR Policy 2025 in September this year, backed by a financial plan of ₹3,268 crore and a long-term roadmap extending to 2050. The policy seeks to attract investments, create employment opportunities, and strengthen state-level production infrastructure through dedicated clusters and training initiatives.

Policy Reforms and Infrastructure Development

From updated cinema laws and digital-governance frameworks to the development of integrated production facilities, the following initiatives collectively demonstrate India's commitment to building a globally competitive and future-ready media and entertainment industry:

Cinematograph (Amendment) Act, 2023

The Cinematograph (Amendment) Act, 2023, represents a landmark reform in India's film legislation. The amendment strengthens the regulatory and enforcement framework of the Cinematograph Act, 1952, introducing for the first time stringent anti-piracy provisions to curb unauthorised recording and distribution of films. Sections 6AA and 6AB make digital piracy a punishable offence, with imprisonment of up to three years and fines that may extend to 5 per cent of a film's audited gross production cost. The newly introduced Section 7(1B) (ii) authorises the Government to direct online intermediaries to remove or restrict access to pirated film content hosted on their platforms, ensuring timely action against digital infringement.

The Act also modernises certification by introducing age-based, streamlining recertification for television and OTT release, and enabling permanent certification validity for films. Together, these provisions align creative freedom with audience protection and content integrity. As one of the key policy milestones under the government's broader media-reform agenda, the amendment underscores India's commitment to a transparent, secure, and innovation-friendly cinematic ecosystem.

National Broadcasting Policy

The National Broadcasting Policy is being developed to create a modern, inclusive, and growth-oriented framework for India's broadcasting ecosystem. It will focus on promoting content diversity, fair competition, and investment in digital infrastructure, while ensuring ethical standards, intellectual property protection, and audience trust. The policy also aims to strengthen India's global footprint in media and entertainment by fostering innovation, supporting local content creation, and integrating traditional broadcasting with emerging digital platforms to build a future-ready communication environment.

India Cine Hub

India Cine Hub (ICH), developed under the Ministry of Information & Broadcasting and managed by the National Film Development Corporation (NFDC), serves as the Government's single-window platform for film facilitation across India. It streamlines processes, promotes transparency, and enhances India's appeal as a global filming destination.

By integrating permissions, incentives, and production resources, India Cine Hub has become the digital backbone of India's film facilitation ecosystem, reinforcing the country's position as a premier global filmmaking hub.

WAVES: India's Global Platform for Creative Collaboration

The World Audio Visual and Entertainment Summit (WAVES) is India's first integrated platform to showcase and strengthen the country's creative economy on a global scale. The platform serves as a convergence point for policymakers, industry leaders, creators, and investors across the film, television, OTT, animation, VFX, gaming, and XR sectors.

Source: PIB

The inaugural edition, held from 1^st - 4^th May 2025 at the Jio World Convention Centre in Mumbai and inaugurated by the Hon'ble Prime Minister, brought together participants from across the world and global majors in content, technology, and investment. The four-day summit combined ministerial roundtables, market screenings, investor forums, masterclasses, and B2B networking, setting the stage for India's leadership in the global media landscape.

Key highlights included the adoption of the WAVES Declaration on Global Media Cooperation, a ₹1,328 crore business pipeline generated through the WAVES Bazaar, and a ₹50 crore investment pool unveiled at WaveX for media-tech start-ups. Anchored in the vision of Viksit Bharat 2047, WAVES underscores India's growing role as a hub for creative technologies, digital storytelling, and international co-production partnerships.

Achievements and Impact

Source: IMDb

India's technological evolution in this sector reflects a decade-long progression from experimentation to excellence. The use of motion capture and CGI in films such as Ra.One (2011), Baahubali: The Beginning (2015), and Brahmastra (2022) etc. demonstrated early domestic capability in high-end production. Since then, Indian studios have advanced rapidly, adopting real-time rendering, volumetric capture, and virtual-production pipelines to produce immersive storytelling experiences. This growing technical maturity has strengthened India's competitiveness in global post-production and VFX markets, with an increasing number of international studios outsourcing advanced creative work to Indian facilities.

The AVGC-XR ecosystem has also witnessed remarkable progress in professional training and creative capacity building.

Skilling and Workforce Development

Through initiatives led by the Media and Entertainment Skills Council (MESC), professionals are being trained in specialised disciplines such as animation, VFX, gaming, and post-production. Industry-academia collaborations have led to the development of competency standards and modular courses that reflect international benchmarks.

Ecosystem Growth and Global Visibility

Source: India Cine Hub

RRR:Featured over 2,800 VFX shots. All animal scenes were synchronised using radio-controlled cars, programmed to operate at specific speeds, reflecting the high sophistication of India's VFX workflow Thor: The Dark World:The VFX work was partially executed by a Mumbai-based studio, illustrating India's expanding participation in international productions Game of Thrones:The iconic dragons (Khaleesi's dragons) were animated in India, highlighting India's growing technical credibility in high-end animation and creature design Avatar:Over 200 VFX shots for Avatar were completed by an Indian company, reflecting India's collaboration on top-tier global productions

India's growing mastery in visual effects and animation has positioned it among the world's most sought-after creative destinations. The country's studios are now integral to large-scale domestic and international productions, contributing to some of the most visually complex projects in global entertainment. This evolution reflects the sector's shift from service-based outsourcing to high-value creative collaboration, where Indian talent drives innovation, precision, and storytelling at par with global standards.

Innovation and Enterprise

India's gaming industry, driven by titles such as BGMI (Battlegrounds Mobile India) and FAU-G (Fearless and United Guards), represent the emerging home-grown gaming ecosystem and local IP creation The Indian comics industry continues to thrive with iconic characters like Suppandi, Chacha Chaudhary, Tenali Raman, and Shikkari Shambhu, several of which are being adapted into animated series and films, signalling the convergence between traditional storytelling and new media platforms.

The rise of start-ups in gaming, XR, and

immersive storytelling marks a major shift toward indigenous innovation. Indian studios are now developing mobile and console games rooted in local narratives, mythology, and heritage-reflecting a move from service-driven work to original content creation. Indie developers have introduced culturally resonant titles such as Raji: An Ancient Epic and Indus Battle Royale, which have earned global attention for their design and storytelling depth. These ventures also attract increasing investor interest, signalling growing confidence in India's creative-tech potential and its readiness for the metaverse economy.

Academic-Industry Integration

The creation of dedicated AVGC hubs and the establishment of the Indian Institute of Creative Technologies (IICT) have enabled long-term academic-industry collaboration. They serve as incubation grounds for digital creators, offering specialised courses and collaborative spaces that connect students with production studios and technology companies. Several state-level initiatives are also promoting regional clusters for animation and gaming, ensuring that creative opportunities expand beyond metropolitan centres.

Further reinforcing India's creative technology infrastructure, the WaveX Media-Tech Startup Accelerator has partnered with T-Hub, Hyderabad, to establish dedicated innovation hubs for the AVGC-XR ecosystem. The collaboration will focus on nurturing media-tech start-ups, facilitating access to mentorship, funding, and infrastructure, and building bridges between creative professionals and technology enterprises.

The Road Ahead for India's AVGC-XR Sector

India's AVGC-XR sector is entering a phase of strategic growth marked by innovation, skill development, and policy convergence. The focus ahead lies in transforming the creative economy into a global powerhouse, driven by indigenous talent, technological advancement, and creative entrepreneurship.

Animation and Visual Effects (VFX)

• Develop Centres of Excellence and introduce fiscal incentives to strengthen India's position as a global VFX and post-production hub.
• Promote co-productions and international partnerships to integrate Indian talent into global content ecosystems.
• Encourage IP-led animation projects that reflect India's cultural depth and creative diversity.

Gaming and eSports

• Foster a structured gaming and eSports ecosystem to support original Indian games and professional tournaments.
• Expand start-up incubation and investment avenues for gaming technologies across entertainment, education, and healthcare.
• Institutionalise ethical gameplay and monetisation frameworks to build a credible and responsible gaming environment.

Extended Reality (XR) and Emerging Technologies

• Scale XR applications across education, tourism, defence, and healthcare, extending beyond entertainment.
• Create standards for accessibility and interoperability, ensuring responsible and inclusive technology use.

Comics and Digital Intellectual Properties

• Digitise and reimagine Indian comic and folklore IPs for animation, gaming, and cross-platform storytelling.
• Promote new transmedia franchises that blend cultural authenticity with global market appeal.
• Strengthen collaborations among artists, publishers, and studios to expand creative ecosystems.

Strategic Enablers and Cross-Sectoral Priorities

• Integrating AVGC-XR courses within mainstream higher education and vocational training, supported by certification standards and a national talent registry.
• Strengthening intellectual property frameworks and facilitating access to global markets through "Create in India" and "Brand India" initiatives.

Collectively, these measures envision a holistic ecosystem that integrates policy reform, human capital, and creative technology to accelerate India's emergence as a global powerhouse in the AVGC-XR domain.

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