WAVES momentum, a 19% animation contraction, and state AVGC policies define a busy week
This was a week dominated by two simultaneous forces pulling in opposite directions: an extraordinary volume of government-backed ambition for India's AVGC-XR sector, and at least one sobering data point that suggests the ground reality is more complicated than the announcements imply. The FICCI-EY finding that India's animation sector contracted 19 per cent in 2025 deserves to sit at the centre of any honest reading of this week's news, precisely because so much else was celebratory in tone. Tamil Nadu's 2-lakh-jobs AVGC policy, West Bengal's Rs 50 crore skills push, Maharashtra's Chief Minister calling for a bigger WAVES 2026, and the India Gaming Vision 2035's $100 billion target all reflect genuine political will — but political will and sector health are not the same thing. The week also underscored how IICT is quietly becoming the institutional anchor of India's creative technology ambitions, appearing in tie-ups with YouTube, Netflix, and WaveX in the same news cycle. On the content side, the Ramayana trailer's arrival — complete with Yash publicly asking audiences to overlook VFX shortcomings — was a reminder that India's most commercially ambitious animation and VFX projects still face production pipeline pressures. The Netflix-hoichoi partnership and the Busan ministerial delegation signal that regional IP and international market access are rising priorities. Taken together, this was a week of scaffolding — some of it sturdy, some of it aspirational.
From our desk
- ReportWaveX takes 15 startups into each of its incubation centres and charges them ₹8,500 plus GST a month
The Ministry of Information and Broadcasting's accelerator selects 15 startups for the first batch at each location and charges a monthly fee of ₹8,500 plus GST per startup [3]. On capital, the programme's own answer is that participation does not guarantee funding [8].
By AVGC-XR Desk
- AnalysisTamil Nadu's AVGC-XR policy rebates the full cost of a studio's IP filings, capped at ₹20 lakh for international filings
The policy notified in March gives AVGC-XR companies a 100 per cent rebate on intellectual property filing and legal costs, capped at ₹20 lakh international and ₹8 lakh domestic [2]. The ₹250 crore research fund reported alongside it is a cross-sector fund the policy never sizes [9].
By AVGC-XR Desk
- AnalysisRoblox creator activity added ₹123.9 crore to India's GDP between 2020 and 2025
That ₹123.9 crore is a six-year cumulative total rather than a single year's contribution [2]. The report's annual exhibit puts 2025 at ₹31.3 crore, against ₹76.3 crore in 2024 [3]. Access Partnership prepared the study for Roblox [7].
By AVGC-XR Desk
- AnalysisIndia's animation and VFX segment grew 2 per cent to ₹105 billion in 2025, after falling to ₹103 billion in 2024
The FICCI-EY report published in March puts the segment at ₹105 billion for 2025 against ₹103 billion in 2024 [3]. The six per cent decline reported from the same report is the animation sub-segment, not the segment [6].
By AVGC-XR Desk
This week on the wire
- Indian animation sector contracts 19% in 2025, FICCI-EY report finds
A 19% sectoral contraction is the most important number of the week and provides essential context for every bullish government announcement in this cycle.
- India Gaming Vision 2035 targets $100 billion to position India as global gaming superpower
A $100 billion target by 2035 is an extraordinary ambition that will be measured against data points like brief 36 — the gap between vision and current trajectory is the real story.
- Tamil Nadu AVGC policy targets 2 lakh jobs in emerging industries
Tamil Nadu's 2-lakh-jobs AVGC policy adds state-level legislative weight to national ambitions and signals competitive federalism in the sector.
- West Bengal launches Rs 50 crore AVGC-XR skills initiative
West Bengal's Rs 50 crore skills initiative is notable for directing capital specifically at workforce development rather than infrastructure or promotion.
- Sony Pictures releases Ramayana: Rise of a Legend trailer
The Ramayana trailer is the week's highest-profile content moment, representing one of the most expensive Indian animated productions ever attempted.
- Ramayana actor Yash urges audiences to overlook film's visual flaws
Yash publicly flagging VFX imperfections at a pre-release event is an unusual moment of candour that speaks to the real pressures facing large-scale Indian VFX productions.
- IICT and Netflix announce scholarships for 100 students
The IICT-Netflix scholarship for 100 students is among the most concrete talent pipeline interventions announced this week, with an actual application deadline to hold stakeholders accountable.
- IICT Mumbai and WaveX launch media tech incubator for AVGC-XR startups
The IICT-WaveX media tech incubator is significant because it pairs institutional credibility with startup acceleration at a moment when the sector needs both.
- Netflix and hoichoi partner to expand Bengali stories globally
The Netflix-hoichoi deal is a meaningful signal that regional Indian language content is moving from domestic streaming to genuine global distribution infrastructure.
- Gameloft shuts India studio, 250 jobs lost
Gameloft shutting its India studio with 250 redundancies is the sharpest counter-narrative to the week's optimistic gaming headlines and should not be buried.
- IICT signs five MoUs at FICCI FRAMES 2026 for creative technology partnerships
Five MoUs signed by IICT at FICCI FRAMES 2026 in a single session reflects how central the institution has become to India's creative technology partnership ecosystem.
- India to lead first ministerial delegation to Busan International Film Festival 2025
A ministerial delegation to Busan elevates India's international creative diplomacy and signals that content export is now a foreign policy instrument, not just an industry aspiration.