AVGC-XR Revolution: 7 Powerful Reasons India’s New IICT Will Transform the Global Creative Economy

India’s Union Ministry of Information & Broadcasting and the Maharashtra government have partnered to launch the Indian Institute of Creative Technologies (IICT) in Mumbai, a first-of-its-kind institute dedicated to the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sector. Located at Dadasaheb Phalke Film City, the institute aims to position India as a global leader in creative technologies through education, innovation, and industry collaboration.

Backed by ₹391.15 crore in initial funding, IICT will operate as a not-for-profit entity with 48% government equity (34% Centre, 14% Maharashtra) and 52% industry stake via FICCI and CII. Designed to mirror the stature of IITs/IIMs, it will offer specialized training, foster R&D, and incubate startups to address global demand for skilled professionals. The institute’s temporary campus at NFDC Mumbai will begin operations shortly, while its 30-year leased 10-acre site will serve as a hub for public-private partnerships and international alliances.

By bridging skill gaps and advancing cutting-edge technologies like AI and immersive media, IICT aims to generate high-value jobs, boost India’s creative exports, and empower youth to lead the $30+ billion global AVGC-XR market. This initiative underscores India’s strategic push to dominate the digital economy while transforming Mumbai into a nexus for creative tech innovation.

AVGC-XR Revolution: 7 Powerful Reasons India’s New IICT Will Transform the Global Creative Economy

In a landmark move to cement India’s role as a global hub for digital innovation, the Union Ministry of Information & Broadcasting and the Maharashtra government signed an MoU to establish the Indian Institute of Creative Technologies (IICT) in Mumbai. Designed to mirror the prestige of IITs and IIMs in their domains, IICT will focus on Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR)—sectors poised to redefine entertainment, education, and industry.  

Why This Matters: A Strategic Leap for India’s Creative Future 

The AVGC-XR industry, projected to exceed $30 billion globally by 2030, has seen India emerge as a key player in animation and gaming. However, fragmented training and R&D gaps have limited its potential. IICT aims to bridge this by:  

• Nurturing world-class talent through specialized programs in storytelling, VR/AR development, and AI-driven content creation.  

• Fostering industry-academia collaboration via partnerships with giants like FICCI and CII (holding 52% equity).  

• Positioning Mumbai, already India’s entertainment capital, as a nexus for cutting-edge creative tech. 

Key Features of the IICT Initiative 

Location & Infrastructure  

• Permanent campus at Dadasaheb Phalke Film City (Goregaon) on a 30-year lease; temporary operations to start soon at NFDC.  
• ₹391.15 crore initial grant from the Centre for state-of-the-art labs, R&D centers, and innovation hubs. 

Governance & Funding  

• Structured as a not-for-profit Section 8 company with 48% government equity (34% Centre, 14% Maharashtra).  
• Governing Council to include industry leaders, ensuring curriculum aligns with global demands. 

Focus Areas  

• Skill Development: Short-term certifications and degree programs tailored to industry needs. 
• R&D: Incubating startups and advancing AI/XR applications in sectors like healthcare and education. 
• Global Partnerships: Attracting collaborations with studios, tech firms, and universities. 

Voices from the Leadership 

• CM Devendra Fadnavis: “IICT will democratize opportunities in the creative economy, empowering youth with future-ready skills.”  

• Union Minister Ashwini Vaishnaw: “This institute will catalyze Mumbai’s rise as a creative tech exporter, generating high-value jobs.” 

The Bigger Picture: Jobs, Innovation, Soft Power 

With India’s AVGC sector growing at 29% annually, IICT could:  

• Create 2 million+ jobs by 2030 in gaming, VFX, and immersive tech.  

• Boost exports by solving Hollywood’s demand for cost-effective, high-quality animation.  

• Drive indigenous IP creation, reducing reliance on foreign content. 

Challenges & Opportunities 

While IICT’s vision is ambitious, success hinges on:  

• Industry buy-in: Ensuring curriculum stays agile amid rapid tech shifts.  

• Accessibility: Scholarships to attract talent beyond urban centers.  

• Global branding: Marketing India as a destination for creative tech education. 

The Road Ahead 

As IICT takes shape, its impact could extend beyond economics—reshaping how India tells its stories, trains its youth, and competes in the digital age. For aspiring creators, this isn’t just an institute; it’s a gateway to shaping the future of global entertainment and technology.