MUMBAI: Madhya Pradesh (MP) is making a power move in the world of animation, visual effects, gaming, comics, and extended reality (AVGC-XR), unveiling a bold policy aimed at transforming the state into a digital media powerhouse. With the AVGC-XR sector projected to grow at 14-16 per cent annually, the state government is eyeing a significant slice of this booming industry, setting ambitious targets of Rs 10,000 crore in investments, 50,000 new jobs, and 150 start-ups by 2029.
The Madhya Pradesh AVGC-XR Policy 2024 is designed to not only position the state as an industry leader but also to boost local talent, attract global players, and accelerate innovation. The government has earmarked Rs 500 crore in financial incentives, offering substantial reimbursements on production costs, training subsidies, and infrastructure development grants. Companies setting up AVGC-XR studios in the state can avail up to 35 per cent reimbursement on eligible production expenses, capped at Rs two crore per project, making MP one of the most attractive destinations for digital content creation in India.
The policy also focuses on infrastructure expansion, with plans to establish two centres of excellence (CoEs) in Indore and Bhopal, dedicated AVGC-XR labs in schools and universities, and India’s first Animation Theme Park to create an immersive learning and entertainment ecosystem. The state is also investing heavily in workforce development, offering up to 50 per cent reimbursement on AVGC-XR training fees, with additional incentives for women entrepreneurs and underprivileged students entering the sector. By 2029, MP aims to train at least one lakh skilled professionals in AVGC-XR disciplines, addressing both local employment needs and global industry demand.
Government officials are confident that the policy will be a game-changer for the state’s economy. A senior official from the Madhya Pradesh industrial development Corporation stated that the AVGC-XR policy is expected to contribute at least Rs 3,000 crore annually to the state’s GDP, with exports from the sector projected to reach Rs 2,500 crore in the next five years. He further emphasised that the initiative is not just about entertainment but also about positioning MP as a hub for ed-tech, defence simulations, medical imaging, and virtual reality training modules, expanding the scope of AVGC-XR beyond gaming and film.
The policy also includes provisions for international collaborations, offering financial support for MP-based companies participating in global trade fairs and co-productions. By integrating global best practices and fostering partnerships with leading AVGC-XR firms, the state hopes to bring Rs 1,500 crore in foreign investments over the next decade.
Madhya Pradesh’s aggressive push into the AVGC-XR space comes at a time when the Indian AVGC sector is projected to be worth Rs three lakh crore by 2030. By laying the groundwork for a thriving digital ecosystem, MP is positioning itself as a leader in next-gen storytelling, immersive experiences, and high-tech content creation. With a structured policy framework, strong financial backing, and a clear vision for the future, the state is not just embracing the digital revolution, it's setting the stage to lead it.
