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AVGC-XR Policy Works to Build Andhra Pradesh’s Digital Future

Gaming and VFX

Business Honor
28 May, 2025

The new AVGC-XR policy seeks to expand the digital economy, draw in studios, and keep talent.

The Andhra Pradesh government is preparing to launch a new AVGC-XR policy to make the state a leader in animation, visual effects, gaming, comics, and extended reality. By 2030, this policy seeks to assist the state in joining the $531 billion worldwide AVGC-XR market. It might also entice Hollywood production companies to contract with the state for some of their work.

Officials have already met with industry representatives from the APDTI Network and Andhra Pradesh VFX Animation Gaming Association to discuss the potential of the new policy. A senior government official stated that the government is developing a policy modeled after the existing IT policy. A draft is ready, and we will soon hold workshops to get feedback from stakeholders before the final announcement.”

Sreedhar Kosaraju, director of the APDTI Network, said the policy aims to bring in global companies, create jobs, and stop creative talent from leaving the state. Kosaraju also stated that “Many skilled professionals from Andhra Pradesh now work in Hyderabad and Bengaluru. This policy can help keep them here.”

Kosaraju added that Andhra Pradesh offers a 30%–40% cost advantage over cities like Hyderabad and Bengaluru, making it attractive for AVGC-XR companies. Kosaraju also suggested creating a special AVGC and gaming corridor in Visakhapatnam and asked the government to provide infrastructure subsidies, since AVGC setups are more expensive than IT infrastructure. With the right support, Andhra Pradesh could become a major player in India’s digital content and entertainment industry.