India’s AVGC-XR Leap: A Tech Superpower in the Making
John: Hey everyone, I’m John, a tech blogger focusing on Web3, metaverse, and blockchain topics over at Blockchain Bulletin. Today, we’re diving into India’s big push in AVGC-XR— that’s Animation, Visual Effects, Gaming, Comics, and Extended Reality—and how it’s positioning the country as a rising tech superpower in these creative fields. If you’d like a simple starter guide to exchanges, take a look at this beginner-friendly overview.
Lila: That sounds exciting, John! Readers are buzzing about how India is stepping up in immersive tech like VR and AR, especially with all the new policies. So, what exactly is AVGC-XR, and why is it such a big deal right now?
What is AVGC-XR?
John: Great question to start with, Lila. AVGC-XR stands for Animation, Visual Effects, Gaming, Comics, and Extended Reality—it’s an umbrella term for technologies that create immersive digital experiences, like animated films, video game graphics, comic book designs, and XR tools that blend virtual and real worlds (think VR headsets or AR apps on your phone). In the past, India has been a key player in outsourcing for global studios, but currently, it’s building its own ecosystem to lead.
Lila: Okay, that makes sense—Extended Reality is like VR and AR combined, right? How did India get involved in this space historically?
Background and History
John: Exactly, Lila—XR merges physical and virtual environments for things like training simulations or interactive gaming. In the past, India’s AVGC sector started growing around the early 2000s with companies providing VFX for Hollywood films, like work on movies such as “Life of Pi” which won Oscars in 2013. By 2022-12-27, reports from Optimize IAS noted India contributed about $2.5 to $3 billion to the global $260-275 billion market, employing around 1.85 lakh professionals directly.
Lila: Impressive numbers! So, what changed recently to make this a “leap” toward being a tech superpower?
Recent Developments
John: Currently, the big shift came with the AVGC-XR Policy 2025, approved by the Indian government and states like Maharashtra on 2025-09-17, as per Times of India reports. This policy includes a $56 billion investment plan over the next decade, focusing on infrastructure, jobs, and skilling—aiming to create 2 million jobs by 2035. For example, Maharashtra’s cabinet okayed it to boost their $1 trillion economy dream, with hubs in cities like Mumbai and Pune.
Lila: Wow, $56 billion is huge! Are there specific initiatives or centers driving this?
John: Yes, on 2024-09-18, the Modi government approved the National Centre of Excellence (NCoE) in Mumbai for AVGC-XR, as announced in posts on X by official accounts like BJP. This center will nurture talent and innovation. Additionally, WaveX launched seven incubation centers across India on 2025-09-25, offering facilities like motion capture studios and AI labs for startups in film, gaming, and XR.
Current Landscape
Lila: That’s forward-thinking. What’s the scene like right now in terms of growth and global standing?
John: Currently, the sector is growing at 16% year-on-year, with India holding about 1% of the global market share, per 2022 data from Optimize IAS, but projections aim for 6% soon. Interviews on CXOToday from 2025-09-24 highlight how AI and virtual production are key, with leaders like Abir Aich from Aptech noting GenAI-driven storytelling redefining media. India Today reported on 2025-09-18 that Maharashtra’s policy gives industry status to AVGC-XR, enabling subsidies and global co-productions.
Lila: Fascinating—can you give some concrete examples of how this is being used?
Use Cases and Examples
John: Absolutely. In gaming, Indian studios are developing XR-based titles for education and entertainment, like virtual history tours of ancient India. For visual effects, companies contribute to international projects, and in extended reality, it’s applied in healthcare training—simulating surgeries via VR. Here’s a quick list of practical use cases:
- Animation: Creating local content for children’s channels to promote Indian culture, as outlined in government frameworks.
- Gaming: Developing mobile games with AR features, boosting exports and job creation.
- Extended Reality: XR labs for industrial training, like virtual production in film to cut costs.
- Comics and VFX: AI tools for faster comic design and effects in movies, integrating with blockchain for IP protection (a nod to Web3 tech).
Lila: Love that list—super helpful! But are there any challenges or risks we should know about?
Challenges and Safeguards
John: Good point, Lila. Challenges include skill gaps, with only 30,000 indirectly employed now, needing massive upskilling. Regulatory-wise, compliance varies by jurisdiction; always check official docs from bodies like India’s Ministry of Information and Broadcasting for child rights protection in digital content. Looking ahead, policies focus on ethical AI use to avoid issues like data privacy in XR apps (and hey, no one wants a virtual reality mishap—keep it grounded!).
Lila: Wise advice. So, what’s next for India’s AVGC-XR journey?
Looking Ahead
John: Looking ahead, by 2030, the sector could hit that 6% global share with investments in parks featuring high-performance rendering farms, as per Maharashtra’s plans shared on X by accounts like MAITRI on 2025-09-29. International partnerships and talent hubs will drive IP exports. It’s all about building on current momentum for sustainable growth.
John: Wrapping this up, India’s AVGC-XR leap is turning creative potential into real economic power, blending tech like AI and XR with storytelling. It’s an inspiring story for anyone in Web3 or metaverse spaces, showing how policy meets innovation. And if you’d like a bit more background on exchanges, you might enjoy this global guide.
Lila: Thanks, John—that breaks it down perfectly. Readers, dive in and see how India’s tech scene is evolving; it’s a space full of opportunity!
This article was created based on publicly available, verified sources. References:
- Original Source
- India’s AVGC-XR Revolution: How AI, Virtual Production, and Skilling Are Powering the Next Decade of Digital Creativity
- Maharashtra cabinet okays policy for animation, visual effects, gaming, comics, extended reality
- How Maharashtra govt’s animation policy promises to be a game changer
- Animation, Visual Effects, Gaming and Comics (AVGC)- XR Sector