GS-3Economy18 November 20253 min read

AVGC-XR Sector: Mastering Creative Tech Infrastructure for UPSC

Aspirant's Challenge

Q. With reference to the Indian Institute of Creative Technologies (IICT), consider the following statements:

1. It is established as a Section 8 company under the Companies Act.

2. The institute serves as the National Centre of Excellence for the AVGC-XR sector.

3. Its first campus was inaugurated at the NFDC Complex in Mumbai in 2025.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Read the analysis below to verify your answer →

Context

India’s Media and Entertainment (M&E) sector is recognized as a high-potential sunrise industry. With a projected growth of USD 100 billion by 2030, the sector is shifting from being a content-consuming nation to a global creator and exporter of intellectual property (IP).

The AVGC-XR Revolution

The Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector is the core driver of India’s creative resurgence.

Key Institutional Milestones:

  • AVGC Promotion Task Force (2022): Formulated the national strategy to make India a global hub.
  • National AVGC-XR Mission: Focuses on "Create in India" to drive digital content production.
  • Job Creation: Projected creation of 20 lakh direct and indirect jobs over the next 10 years.

Indian Institute of Creative Technologies (IICT)

The IICT (unveiled in 2024/2025) serves as the National Centre of Excellence for AVGC-XR.

  • Structure: Established as a Section 8 (not-for-profit) company.
  • Mumbai Campus: Inaugurated on July 18, 2025, at the NFDC Complex with an initial budget of ₹400 crore.
  • Partnerships: Collaborative curricula and internships with global majors like Google, Meta, Microsoft, NVIDIA, and Netflix.
  • WaveX Incubator: Launched on August 30, 2025, to nurture media-tech startups.

Policy Reforms and Infrastructure

1. Cinematograph (Amendment) Act, 2023

A landmark reform to curb piracy and modernize film certification.

  • Anti-Piracy: Sections 6AA and 6AB make digital piracy a punishable offense with up to 3 years imprisonment and fines up to 5% of gross production cost.
  • Certification: Introduces age-based categories and ensures permanent validity for film certificates.

2. WAVES Summit

The World Audio Visual and Entertainment Summit (WAVES) is India’s first integrated global platform for the creative economy.

  • Inaugural Edition: Held May 1-4, 2025, in Mumbai.
  • Impact: Generated a ₹1,328 crore business pipeline and a ₹50 crore investment pool for startups.

3. State-Level Initiatives

  • Maharashtra: Approved AVGC-XR Policy 2025 with a financial plan of ₹3,268 crore.
  • Karnataka: Implemented a dedicated AVGC-XR Policy 2024–2029.

Global Footprint and Technical Maturity

Indian studios are no longer just outsourcing hubs but high-value creative collaborators.

  • Global Blockbusters: Indian talent contributed to Avatar (200+ VFX shots), Game of Thrones (dragon animation), and Thor: The Dark World.
  • Domestic Excellence: Technical maturity demonstrated in films like RRR (2,800+ VFX shots) and Brahmastra.
  • Indigenous Gaming: Rise of home-grown titles like FAU-G, Raji: An Ancient Epic, and Indus Battle Royale.
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🎯 Analysis & Insights

Prelims mastery

Correct Answer: (d) 1, 2 and 3.

Reasoning: All statements are based on the source. IICT is established as a Section 8 company, serves as the National Centre of Excellence for the AVGC-XR sector, and its Mumbai campus was inaugurated in July 2025.

Mains perspective

"The AVGC-XR sector represents the convergence of technology, storytelling, and innovation." Discuss the significance of the 'Create in India' mission in transforming India from a service-driven outsourcing hub to a global leader in intellectual property creation. (150 words)

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