CHENNAI: The State government on Friday released the Tamil Nadu AVGC-XR Policy 2026, outlining a roadmap to develop the State as a major hub for animation, gaming and immersive technologies.
Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) technologies, such as augmented and virtual reality, are among the fastest-growing segments of the digital economy. The policy aims to attract studios, encourage startups and build a skilled talent pool for the sector.
The policy has set targets of more than 200 AVGC-XR startups, 100 companies and around two lakh high-value jobs, while aiming for a 20 per cent share of India's AVGC-XR market and exports.
A key initiative is the creation of a flagship AVGC-XR Centre of Excellence in Chennai which will be set up by Electronics Corporation of Tamil Nadu (ELCOT), with facilities such as performance capture studios, XR testing labs and immersive content production infrastructure. Similar regional centres are planned in Coimbatore, Madurai, Tiruchy, Salem and Tirunelveli to support training, incubation and production.
To support innovation, the policy proposes a Rs 250 crore research and technology fund to promote research in the field. Startups and companies will also be eligible for financial incentives including 50 per cent reimbursement, up to Rs 15 lakh per year, for participation in international events and expos. The policy further offers 100 per cent reimbursement of intellectual property filing costs up to Rs 20 lakh for international patents and Rs 8 lakh for domestic filings.
AVGC-XR subjects will be introduced in State Board schools, while digital arts centres are planned across 300-400 colleges. Scholarships of up to Rs 2 lakh per year will be provided under the Naan Mudhalvan programme for students pursuing specialised courses