Madhya Pradesh’s recently unveiled AVGC-XR Policy 2025 is rapidly positioning the state as a burgeoning hub for the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sectors. The policy’s comprehensive incentives and infrastructure support have attracted significant attention from both international studios and domestic companies seeking expansion opportunities in tier-2 cities like Indore.
Chief Minister Mohan Yadav’s investment outreach in Germany, including visits to Munich and Stuttgart, has catalyzed interest from European studios. These engagements have led to advanced discussions with German companies exploring collaborations with local studios in Madhya Pradesh. The state’s competitive edge is further enhanced by its cost-effective talent pool and supportive business environment.
The AVGC-XR Policy aims to attract ₹2,000 crore in investments and generate over 20,000 employment opportunities by 2029. Key initiatives include a 25% subsidy on total expenditure, the establishment of AVGC media parks through public-private partnerships, centers of excellence for emerging technologies like AR, VR, and AI, and dedicated training institutes.
Industry stakeholders, such as Himanshu Chaturvedi, owner of an Indore-based animation company serving over 250 clients, have reported a surge in business collaboration inquiries and studio setup interests in the region. The policy’s incentives, coupled with the availability of skilled talent at competitive costs, are seen as significant advantages for the state’s AVGC-XR sector.
Currently, Indore hosts approximately 10-15 animation studios and around 30 startups operating within the AVGC sector. The policy’s emphasis on research and development, intellectual property creation, and support for emerging technologies is expected to further bolster the state’s position in the global digital content landscape.
With the AVGC-XR industry projected to grow at 20% annually, driven by the surge in OTT viewership, film VFX, and mobile gaming platforms, Madhya Pradesh’s strategic initiatives are timely. The state’s commitment to fostering innovation, skill development, and international collaborations positions it as a promising destination for AVGC-XR investments and talent cultivation.