AVGC-XR sector is undergoing rapid evolution in the country, emerging as a pivotal component across various industries such as entertainment, education, and tourism. Kerala’s early recognition of the potential inherent in AVGC-XR is poised to propel the state’s growth. This policy endeavours to present a comprehensive overview of the current status of the AVGC-XR sector in Kerala, delineating its potential benefits, challenges, and recommendations aimed at fostering its development within the state.