Netflix, Digital Domain and Barnstorm plant flags in Hyderabad as India's AVGC-XR policy architecture takes shape
The dominant story this week is infrastructure, both physical and regulatory. Hyderabad is emerging as the week's most consequential geography: Netflix's Eyeline Studios has formally launched a VFX facility there, Digital Domain is establishing a presence, and Barnstorm VFX has opened a new studio — three significant international and cross-border commitments to a single city in a single week. That clustering is not coincidental; it reflects a maturing location calculus among global studios weighing India's talent depth against its improving production ecosystem. On the policy front, the week delivered meaningful movement at multiple levels of government. The Ministry of I&B has constituted an AVGC Promotion Task Force and signalled imminent implementation of a National AVGC-XR Policy alongside a dedicated mission. Karnataka has published operational guidelines for its Animation and Gaming Policy 3.0, while Madhya Pradesh is pursuing 20,000 jobs through its own AVGC-XR framework. The India-France Desibel Initiative adds an international bilateral dimension that the sector has lacked. The online gaming legislative picture is clarifying rapidly — Parliament has cleared a bill with significant implications for the ₹316 billion sector — though the regulatory capacity to manage addiction and age-rating, as several observers noted, continues to lag behind the industry's growth curve. Krafton's chairman meeting Prime Minister Modi signals that global gaming majors are treating India as a tier-one strategic market, not a secondary opportunity. Taken together, the week reads as a sector moving from aspiration to architecture.
This week
- Netflix launches VFX facility Eyeline Studios in India
Netflix entering Indian VFX with a branded facility signals that global streamers are moving beyond commissioning content from India to investing in permanent production infrastructure here.
- Digital Domain to set up facilities in Hyderabad
Digital Domain's Hyderabad facility adds a marquee Hollywood VFX brand to a city that is rapidly positioning itself as India's primary destination for international studio investment.
- Barnstorm VFX expands global footprint with new studio in Hyderabad
Barnstorm's arrival completes a trio of international VFX studio openings in Hyderabad this week, suggesting a genuine cluster effect rather than isolated decisions.
- National AVGC-XR Policy to be implemented soon with National AVGC-XR mission
The I&B Secretary's confirmation that the National AVGC-XR Policy and Mission will be implemented together is the clearest government commitment to date and sets expectations for the sector's near-term regulatory environment.
- Ministry of I&B constitutes AVGC Promotion Task Force
Constituting the AVGC Promotion Task Force gives the policy framework an operational body, which matters more for actual execution than the policy documents themselves.
- India and France launch Desibel Initiative to boost AVGC-XR sector globally
The India-France Desibel Initiative introduces a bilateral co-production and industry-development dimension that could open European co-financing and distribution pathways for Indian studios.
- Krafton chairman meets PM Modi, affirms long-term India investment
Krafton's chairman seeking a direct meeting with the Prime Minister elevates India's standing as a gaming market in the eyes of global investors and sets a precedent for other international gaming majors.
- India notifies Promotion and Regulation of Online Gaming Rules, 2026
Notification of the Online Gaming Rules 2026 gives the industry a clearer compliance framework, though the gap between legislative intent and enforcement capacity remains a live concern.
- Karnataka unveils operational guidelines for animation and gaming policy 3.0
Karnataka releasing operational guidelines for Policy 3.0 is the difference between a policy announcement and one that studios can actually structure investment decisions around.
- PhantomFX raises ₹59.99 crore via QIP for global expansion and creative leadership
PhantomFX raising ₹59.99 crore through a QIP is one of the more substantial capital market moves by an Indian VFX studio in recent memory, and the global expansion mandate tied to it bears watching.
- Indian VFX studio Basilic Fly launches Lightrunner Studios in UK
Basilic Fly's UK launch via Lightrunner Studios is a strategic hedge — establishing a western entity to compete for international briefs while keeping production capacity in India.
- Madhya Pradesh to create 20,000 jobs via new AVGC-XR policy
Madhya Pradesh targeting 20,000 jobs through AVGC-XR policy represents a significant state-level bet that, if backed by the right infrastructure, could diversify the sector beyond its current Mumbai-Bengaluru-Hyderabad concentration.