Maharashtra Unveils Ambitious Policy for India's Creative Economy Boom

Maharashtra's AVGC-XR Policy 2025: A Game-Changer for India's Creative Economy

Maharashtra has officially launched its Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) Policy 2025, marking a significant milestone in India's creative economy. This policy grants the burgeoning AVGC-XR sector official industry and infrastructure status, paving the way for aggressive growth. The state aims to increase the sector's value from Rs 25,000 crore to Rs 65,000 crore within five years, representing an annual growth rate of 25 percent.

The policy is not just about numbers; it envisions a statewide transformation. Maharashtra plans to foster AVGC-XR growth across all urban tiers, with a focus on Tier 2 and Tier 3 cities like Nashik, Nagpur, and Kolhapur. These regions offer lower operational costs and a growing pool of young, educated talent. The policy aims to attract Rs 50,000 crore in investments, establish dedicated parks and centers of excellence, and boost global visibility through international partnerships.

The Significance of the Policy

The timing of this policy is crucial. India's Media & Entertainment market is projected to grow from USD 27 billion in 2024 to over USD 100 billion by 2030. Rapid smartphone adoption, high-speed internet, and the OTT streaming boom are driving demand for quality digital content. Technology convergence, including machine-learning tools, virtual production, and blockchain, is redefining creative processes and unlocking new revenue streams in gaming and immersive storytelling.

Maharashtra is already a major player, hosting over 30 percent of India's AVGC-XR studios and 20 universities focused on creative education in hubs like Mumbai and Pune. Designating AVGC-XR as a 'sunrise industry' under its IT & ITeS Policy 2023 underscores the state's commitment. The policy aims to shift Maharashtra from a services hub to a content leadership position, developing its own intellectual property (IP) and boosting exports.

Expert Perspectives

Industry experts welcome the policy but also highlight challenges. "The emphasis on Tier 2 and Tier 3 cities is strategic," said a leading analyst. "However, attracting and retaining top-tier creative talent requires more than just lower costs. World-class infrastructure, collaborative networks, and continuous upskilling opportunities are essential."

The transition from a service provider to a global IP creator is another significant challenge. Building and monetizing original content that resonates internationally requires sustained investment, a strong legal framework for IP protection, and a deep understanding of global market trends—challenges that extend beyond policy incentives.

Future Implications

If successful, this policy could solidify Maharashtra's position as a global creative powerhouse, driving innovation and attracting significant foreign direct investment. It promises high-skill, future-proof jobs in a rapidly evolving digital landscape. For businesses, the incentives for setting up AVGC-XR units, particularly in developing regions, present compelling opportunities for expansion.

For India, this policy is a clear signal of intent to capture a larger share of the global creative economy, moving up the value chain from back-office support to front-end content creation. The next five years will test Maharashtra's resolve to turn this vision into reality, but the framework is now firmly in place.