The Madhya Pradesh (MP) government has launched the animation, visual effects, gaming, comics and extended reality (AVGC-XR Policy) 2025. Under this policy, the state government aims to attract an investment of Rs 2,000 crore, create more than 20,000 jobs and promote more than 150 startups by 2029.
“Madhya Pradesh’s AVGC-XR Policy 2025 is a visionary step towards transforming the state into a powerhouse of creative innovation. With a strong focus on infrastructure, skill development, and global partnerships, this initiative will unlock immense opportunities for talent and enterprises alike,” said Madhya Pradesh AVGC-XR Media & Entertainment Association secretary Sanjay Khimesara.
He further mentioned, “As president of Asifa India, patron of state association, and volunteer who has been actively involved for the initiative, I believe this policy will catalyse a dynamic ecosystem, fostering world-class animation, VFX, gaming, and XR advancements. The state’s commitment to Rs 2,000 crore investment and thousands of job creations is a testament to its ambition in shaping the future of India’s digital economy.”
“We had been trying for the policy for quite some time. We are delighted and very happy that the policy is now approved by the government. Thousands of jobs will be created, hundreds of studios will benefit from this policy. Soon MP is going to become a hub for AVGC-XR,” said of Purple Turtle co-creator and MP AVGC-XR Association chairman Manish Rajoria.
Kayra Animation co-founder and CEO Arpit Dubey, who is a member of the association expressed, “The launch of Madhya Pradesh’s AVGC-XR Policy 2025 is a landmark moment for the industry and a proud achievement for the state. Recognising AVGC as a sunrise sector, the government of Madhya Pradesh has taken a visionary step to establish the state as a key player in the global AVGC-XR ecosystem by fostering innovation, investment and skill development. Having contributed significantly to its development, I am excited to see how this initiative will create new opportunities for studios, professionals and businesses. With strategic incentives, infrastructure support and a vision for long-term growth, this policy is set to transform the creative economy of the Madhya Pradesh.”
Below are some highlights of the policy:
IT, ITES and ESDM sector will get a boost
The AVGC-XR Policy 2025 will integrate two sectors of the state – the IT, ITES and ESDM sectors with the filmmaking sector – and will create a holistic environment to promote animation, VFX, gaming, comics and XR technology.
Development of AVGC Media Park
Infrastructure development is envisaged at the center of this policy. The government will build the AVGC Media Park that will spread over 20 acres under the Public-Private Partnership model. This state-of-the-art facility will be equipped with advanced production and post-production studios, plug-and-play work spaces for start-ups and specialised data centers as per the requirements of AVGC companies.
Financial and operational support
To make the policy attractive for industries, the government will provide financial and operational support:
- 25 per cent subsidy on capital expenditure, up to a maximum of Rs 30 crore.
- 25 per cent rent assistance for three years, up to a maximum of Rs 10 lakh per year.
- Employment generation incentives – assistance of Rs 3,000 per employee per month (for one year).
- Assistance for intellectual property (IP) protection – 50 per cent of registration cost (up to a maximum of Rs 20 lakh).
- Reimbursement of bandwidth costs for three years, up to a maximum of Rs 50,000 per year.
Promotion of education and training
Under this policy, scholarships will be given to students pursuing careers in animation, gaming and related fields. Apart from this, companies will be reimbursed the amount spent on upskilling their employees. AVGC-XR labs and centers of excellence (CoE) in emerging technological areas like AR, VR and AI will be set up in fine arts colleges.
Promotion of international partnerships
Madhya Pradesh is encouraging international co-productions and partnerships through this policy. Under this, 30 per cent of the eligible expenditure incurred on international projects will be reimbursed up to a maximum of Rs 2 crore.
Women entrepreneurship to get support
This policy has a special focus on women empowerment. There will be special scholarships and incentive schemes for women working in this field. Apart from this, women entrepreneurs will be given additional assistance in starting start-ups.
Important role of MPSEDC
The MPSEDC (Madhya Pradesh State Electronics Development Corporation) has played an important role in preparing and implementing this policy. This institute, working under the Department of Science and Technology, is a pioneer in promoting innovation and investment in the state.
With the AVGC-XR Policy-2025, the state government aims to make Madhya Pradesh a leading state in the field of creative and digital economy.
