Pune: The AVGC XR (Animation, Visual Effects, Gaming, Comics, and Extended Reality) sector in India is entering a new phase of growth, moving beyond its traditional bases in Mumbai, Bengaluru, and Hyderabad.
Cities such as Pune, Kochi, Ahmedabad, Coimbatore, and Bhubaneswar are fast becoming the next big creative centers, supported by affordable technology, talent availability, and strong internet connectivity.
In an exclusive conversation with Sahyadri Startups, Sandip Weling, Chief Business Officer, Global Retail, Aptech Limited and Brand Custodian, Maya Academy of Advanced Creativity (MAAC), highlighted that emerging production houses in such satellite towns are diversifying India’s talent base, easing the pressure on metros, and creating employment closer to home for young creators.
The Creator Economy Effect: Tier-2 Cities Driving AVGC XR Growth
According to Sandip, “Affordable hardware, advanced software, and the spread of online platforms are enabling Tier-2 and Tier-3 cities to establish themselves as important contributors to the AVGC XR ecosystem.
A major catalyst for this shift is the rise of the creator economy. Students and professionals are increasingly pursuing independent ventures, producing YouTube content, indie games, AR/VR experiences, and virtual productions.
The earnings potential, often five to six times higher than entry-level jobs, has made entrepreneurship an attractive option for AVGC XR talent.”
Also Read: Wadia College of Engineering and FireBirdVR Launch Advanced XR Lab
Government Push for AVGC XR Sector
The Government of India and several states are actively supporting the AVGC XR industry. Initiatives include:
- Indian Institute of Creative Technologies (IICT), Mumbai – a national center of excellence inaugurated in 2025, offering industry-aligned curricula, advanced labs, incubation, and placement support.
- IMAGES Tower, Hyderabad – a dedicated hub for animation, multimedia, gaming, and immersive media developed with the Telangana government.
- Maharashtra Immersive and Digital Content Creators Association (MIDCCA) – focusing on skill development, policy advocacy, and ecosystem building.
- Creator Economy Fund – a USD 1 billion initiative to empower digital creators.
- State Policies – Karnataka (2024–2029), Madhya Pradesh (2025), and Kerala (2024–2029) have announced policies supporting AVGC XR investments, skilling, and regional centers of excellence.
Also Read: Pune Hosts MAAC Manifest 2025, Showcasing Innovation in AVGC-XR Sector
Industry Transformation with AI and Virtual Production
Sandip says, “The adoption of artificial intelligence is revolutionizing AVGC XR workflows. Contrary to fears, AI is proving to be an enabler, automating repetitive tasks, cutting costs, and allowing creators to focus on high-quality output.”
“GenAI-enabled courses offered by institutions like Aptech are equipping students with hands-on experience in AI-based design and virtual production.
Virtual production technologies, including real-time engines, motion capture, and in-camera VFX, are transforming content creation across films, gaming, advertising, and live events,” he said.
India’s virtual production market is projected to witness double-digit CAGR through 2033, creating roles for XR UX designers, Unreal generalists, motion capture animators, and more.
Global Demand and Industry Outlook
India’s AVGC XR sector, currently valued at around USD 33.5 billion, is projected to grow at 11–12% CAGR until 2030. With Hollywood productions resuming and OTT platforms expanding their local content strategies, Indian studios are expected to see rising export demand.
As the industry decentralizes, Tier-2 cities are no longer just outsourcing destinations. They are becoming world-class creative hubs capable of producing international-quality animation, gaming, and immersive content, says Sandip.
Conversation Highlights:
- AVGC sector growing faster than the overall media & entertainment industry (projected 11–12% CAGR till 2030).
- Animation & VFX faced slowdown due to the Hollywood strike but are now seeing revival with outsourcing to India resuming and OTT content demand rising.
- Digital media & post-production are the strongest growth drivers, growing at 14–15% YoY.
- Generative AI now integrated into all major AVGC courses — from short-term to career programs.
- Seen as a productivity enhancer (not a job-killer) – reduces costs, shortens timelines, improves creative output.
- AVGC skills now used beyond media & entertainment:
- Textile, manufacturing, automobile industries (UI/UX, 3D content, digital design).
- Education & healthcare using AR/VR as pedagogical tools.
