Tamil Nadu Plans Major AVGC-XR Push with New Policy

At the 17th India Game Developer Conference (IGDC) in Chennai, Tamil Nadu’s IT and Digital Services Minister, Dr. P. Thiaga Rajan, announced that the state’s AVGC-XR (Animation, Visual Effects, Gaming, Comics, and Extended Reality) policy is close to release. 

The framework, developed over two years, will focus on four pillars: education and skilling, infrastructure, ease of doing business, and financial incentives tied to inclusion goals.

The announcement came as IGDC hosted its first edition outside Hyderabad, signaling Tamil Nadu’s growing role in India’s gaming and creative technology ecosystem. P. Rajan said the policy aims to equip local talent and small studios with training, infrastructure, and funding access to strengthen the state’s digital creative economy.

Tamil Nadu AVGC-XR Policy to Boost Creative Tech Ecosystem

P. Rajan outlined that the education and skilling component will introduce gaming and creative tech programs in universities, while infrastructure initiatives will establish production hubs and training facilities. The ease of doing business measures will simplify compliance for small creative firms, and financial incentives such as subsidies, grants, and access to investment pools will promote sector growth.

These priorities align with the Game Developers Association of India (GDAI) focus on inclusion, particularly for women and underrepresented groups.

He added that Tamil Nadu’s high gross enrolment ratio in higher education (48%), compared to the national average of 25%, and its strong cultural base in cinema, literature, and music provide a solid foundation for creative technology growth.

Rajan described the sector as being at an inflection point. He noted that routine IT service jobs are shrinking amid automation, while startup activity is rising from around 2,000 to over 11,000 registered startups during the current administration.

He concluded that events like IGDC Chennai help connect emerging talent with industry opportunities and foster long-term growth. Rajan said the state intends to make the event an annual fixture to sustain momentum in Tamil Nadu’s gaming and creative industries.