Cabinet Clears National AVGC-XR Centre in Mumbai; India Eyes Global Leadership in Creative Tech Sector

In a major policy push to position India as a global powerhouse in the fast-growing Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector, the Union Government has approved the establishment of a National Centre of Excellence (NCoE)—the Indian Institute of Creative Technology (IICT)—in Mumbai.

The announcement marks a significant milestone in India's ambition to build a robust digital content and immersive technology ecosystem, backed by institutional support, global collaborations, and a strong talent pipeline.

Policy Vision Rooted in AVGC Task Force Recommendations

The decision builds upon the recommendations of the AVGC Promotion Task Force, constituted by the Ministry of Information and Broadcasting in April 2022. The Task Force had outlined a comprehensive roadmap to unlock the sector's potential and also developed a Model State Policy framework, enabling states to create conducive ecosystems for AVGC-XR growth.

This framework has been instrumental in:

• Guiding state-level policy adoption and incentives

• Encouraging regional centres of excellence

• Aligning industry needs with skill development initiatives

IICT: National Hub for Creative Technology Innovation

The newly approved IICT is envisioned as a central hub for capacity building, research, and industry collaboration, designed to catalyse growth across the AVGC-XR value chain.

Key features of the institute include:

• A hub-and-spoke model, enabling coordinated development across states and regions

• Strong integration with industry, academia, and government stakeholders

• Focus on cutting-edge technologies such as virtual production, gaming engines, and immersive media

The institute will serve as a nodal platform to:

• Support the creation of regional AVGC centres of excellence

• Facilitate knowledge sharing and skill standardisation

• Promote innovation and entrepreneurship in creative technologies

Global Collaborations and Industry Integration

A defining aspect of IICT is its emphasis on international partnerships and industry-led learning. The institute is set to collaborate with:

• Global technology companies

• Leading animation and gaming studios

• Premier academic and research institutions

These collaborations will focus on:

• Designing industry-aligned curricula

• Offering specialised training programmes

• Advancing research and development in immersive technologies

• Providing internships, scholarships, and startup incubation support

Such integration is expected to bridge the longstanding gap between academic training and industry requirements, a key bottleneck in India's AVGC ecosystem.

Building a Pan-India Talent Pipeline

The IICT is already drawing students and trainees from across multiple states, reflecting growing interest in AVGC-XR careers. With India's median age under 30 and a rapidly expanding digital user base, the sector holds immense potential for job creation and export growth.

Industry estimates suggest:

• India's AVGC-XR market could grow at 20–25% annually over the next decade

• The sector has the potential to generate millions of jobs, particularly for youth

• Global demand for digital content and immersive experiences is projected to cross hundreds of billions of dollars

Continuous Engagement with States

To ensure coordinated growth, the Ministry of Information and Broadcasting has been actively engaging with states through:

• Workshops and policy consultations

• Conferences and knowledge-sharing platforms

• Webinars on emerging trends and regulatory frameworks

These efforts aim to create a federated yet cohesive ecosystem, where states play a proactive role in nurturing local talent and infrastructure.

Government's Strategic Push

The establishment of IICT aligns with broader national priorities, including:

• Digital India and Skill India missions

• Promotion of creative economy exports

• Strengthening India's position in global media and entertainment value chains

The information was shared in the Rajya Sabha by Minister of State for Information and Broadcasting Dr. L. Murugan, in response to a query by Shri Sana Sathish Babu, highlighting the government's focused approach toward this high-growth sector.

The Road Ahead

With the launch of IICT, India is taking a decisive step toward:

• Becoming a global hub for animation, gaming, and immersive technologies

• Creating a future-ready workforce

• Driving innovation-led growth in the digital economy

As the AVGC-XR sector continues to converge with emerging technologies like AI, AR/VR, and metaverse platforms, initiatives like IICT could play a transformative role in shaping India's digital future.