After a long wait, Tamil Nadu has finally unveiled its much-anticipated AVGC-XR Policy 2026, aimed at accelerating growth in the animation, visual effects, gaming, comics and extended reality sectors. The policy envisions positioning the State as a creative powerhouse where artists, technologists and storytellers can drive a sustainable, inclusive and innovation-led economy — attracting investments, generating employment and strengthening Tamil Nadu’s contribution to India’s global soft power.
The Electronics Corporation of Tamil Nadu Limited (ELCOT), under the Information Technology and Digital Services Department, Government of Tamil Nadu, shall function as the nodal agency for the AVGC-XR sector and for implementing this policy.
Through this policy, the State aims to support the creation of at least 200 AVGC-XR startups by 2030; foster the growth of a minimum of 100 AVGC-XR companies to create a minimum of 20 high-profile companies in terms of revenue and also create a skill-development ecosystem, including Digital Arts Centres in 300-400 colleges, finishing school with world-class trainers, and annual hackathons to mobilise talent.
A dedicated facilitation cell will be established for the AVGC-XR sector. The desk will undertake investment promotion, MoU execution, business facilitation, including single window clearances in coordination with Guidance Tamil Nadu, startup support (with StartUp TN and iTNT), skill development (with Tamil Nadu Skill Development Corporation) and after care support. ELCOT will facilitate single window clearances through the Tamil Nadu Single Window Portal operated by Guidance Tamil Nadu, which offers access to over 200 services spanning over 40 government departments and agencies.
