The way movies are made is changing rapidly as computer-generated imagery (CGI), visual effects, virtual production and real-time technologies become an increasingly important part of filmmaking. From creating entire landscapes on a computer to allowing actors to perform inside digitally generated environments, technology is giving filmmakers a much larger canvas to tell stories.
For years, the green screen was one of the most familiar tools in visual-effects filmmaking. Actors would perform against a green background, with locations, creatures and other elements added during post-production. Today, filmmakers are increasingly using LED volumes and virtual production, allowing digital environments to appear around performers while a scene is being filmed.
The technology is particularly useful for large-scale films that involve fantasy worlds, historical settings, space, futuristic cities or locations that are difficult to access. Instead of physically travelling to multiple locations or constructing massive sets, filmmakers can combine real sets with computer-generated environments and make changes digitally.
Virtual production is also changing the planning process. Recent work on the upcoming Indian epic Ramayana has highlighted how filmmakers used extensive virtual pre-visualisation, with scenes being digitally planned before the actual shoot. This approach allows directors and cinematographers to examine camera movements, compositions and action sequences in advance, helping teams make important creative decisions before production begins.
The shift is not limited to big-budget films. Streaming platforms, advertising companies and regional filmmakers are also exploring virtual production and real-time rendering. Industry research published in August 2026 estimates that India’s virtual production market could grow from $37 million in 2025 to around $188.8 million by 2030, driven by demand from Bollywood, regional cinema and OTT platforms.
India’s wider animation and VFX ecosystem is also expanding. Government data shows that animation and VFX contributed about Rs 103 billion to India’s media and entertainment sector in 2024, with the segment projected to reach around Rs 147 billion by 2027. The country’s VFX and animation teams are already working on international films, streaming content, advertising and immersive experiences.
The growing investment in India’s creative-technology ecosystem is also visible through global companies. Netflix opened Eyeline Studios in Hyderabad in March 2026, describing the facility as a long-term investment in India’s AVGC ecosystem and highlighting visual effects, virtual production and next-generation production technology.
Artificial intelligence is adding another dimension to this transformation. AI-assisted tools are beginning to support areas such as visual development, storyboarding, image generation, editing and post-production. While the technology is creating new possibilities, filmmakers and industry professionals are also debating questions around creative ownership, employment and the role of human artists.
For audiences, much of this technological change may go unnoticed. A successful visual effect is often one that feels completely natural and allows viewers to remain focused on the characters and story. Whether it is a digitally created city, a fantasy creature or an expanded physical landscape, CGI works best when technology supports the storytelling rather than distracting from it.
The business impact is equally important. Virtual production can reduce dependence on physical locations, make complex scenes easier to plan and give filmmakers greater control over the final visual output. At the same time, the growing use of digital production is creating demand for VFX artists, animators, technical directors, game-engine specialists, virtual-production crews and other creative technology professionals.
The industry, however, is not moving towards a completely digital form of filmmaking. Physical sets, practical effects, cinematography and live performances remain essential. Instead, modern filmmaking is increasingly becoming a combination of physical and digital production, with CGI filling the gaps where traditional methods have limitations.
The transformation from green screens to virtual worlds is therefore more than a change in visual effects. It is reshaping how films are planned, produced and completed. As real-time rendering, virtual production, CGI and AI-assisted tools continue to improve, filmmakers in India and around the world are gaining new ways to turn ambitious ideas into cinematic experiences.
For India’s growing media and entertainment industry, this shift also presents a larger opportunity. With a strong base of creative talent and increasing investment in AVGC-XR technologies, the country is moving beyond being a post-production destination towards becoming an important centre for the creation of globally competitive digital content.