Immersive Technologies in India: VR, AR, XR, Market Growth and Government Initiatives
Blending Physical and Virtual Worlds
Discover how Virtual Reality, Augmented Reality, Mixed Reality and Extended Reality are transforming India's education, heritage, infrastructure and creative economy.
India is expanding its immersive technology ecosystem through the Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) sector. The Indian Institute of Creative Technologies (IICT), Mumbai, and the planned AVGC Content Creator Labs are among the initiatives.
The Union Budget 2026–27 allocation cited in the backgrounder is ₹250 crore for AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges.
Table of Contents
1. From Digital to Immersive: India's Next Leap
Over the last decade, India has developed a strong digital ecosystem that has transformed how people access services, communicate and obtain information. Platforms such as UPI, Aadhaar, DigiLocker, UMANG and BHASHINI have expanded access to digital services and information across the country.
As digital platforms become more widespread, the next opportunity is to make interactions more interactive, visual and experiential. Advances in Artificial Intelligence (AI), high-speed connectivity and computing are helping move digital experiences beyond conventional screen-based interactions.
This emerging phase is being shaped by immersive technologies, which bring digital content closer to the way people experience the physical world. Virtual Reality, Augmented Reality, Mixed Reality and 360-degree experiences allow users to explore digital environments and interact with information in new ways.
These capabilities can support education through virtual simulations, healthcare through immersive training, tourism through virtual exploration and infrastructure planning through digital models. They can also create new experiences across culture, gaming, entertainment, retail and other sectors.
The opportunity extends beyond adopting new technology. By developing research capabilities, skilled talent, original content, startups and indigenous solutions, India can aim to strengthen its position in the global immersive technology market.
2. India's Immersive Technology Market: Growth and Opportunities
India's immersive technology market generated USD 1,259.5 million in revenue in 2023. The market is projected to reach USD 7,818.7 million by 2030, with a compound annual growth rate (CAGR) of 29.8%.
Projected Market Expansion, 2023–2030
Visual comparison using the 2030 projection as 100%.
| Market Indicator | Figure | Meaning |
|---|---|---|
| 2023 revenue | USD 1,259.5 million | Reported market revenue |
| 2030 projection | USD 7,818.7 million | Estimated future market size |
| Projected CAGR | 29.8% | Expected annual compound growth rate |
| Regional outlook | Asia Pacific | The source identifies India as a fast-growing market in the region |
India's expanding digital ecosystem, growing middle class and rising e-commerce adoption provide a foundation for market growth. However, becoming a global hub will require sustained investment in research, hardware and software capabilities, content production, startups and specialised talent.
3. ESTIC 2026: Creative Minds, Catalyzing Science
The second edition of India's Emerging Science, Technology and Innovation Conclave, ESTIC 2026, is scheduled for 27–29 October 2026 at Bharat Mandapam, New Delhi. Its theme is “Creative Minds, Catalyzing Science, Empowering Technologies.”
Dates
27–29 October 2026
Venue
Bharat Mandapam, New Delhi
Emerging science and technology
Organised by the Council of Scientific and Industrial Research (CSIR), the conclave is intended to bring together ministries, researchers, innovators, industry leaders, deep-tech startups and global experts.
The programme includes 12 thematic areas, including Immersive Tech: Generative XR and Spatial Computing, along with plenary sessions, technical discussions and exhibitions.
4. Understanding Immersive Technologies: VR, AR, MR and XR
Immersive technologies create interactive digital experiences that can combine the physical and digital worlds. They allow users to explore digital objects, respond to simulated situations and interact with information in more experiential ways than conventional screen-based media.
For example, a student may explore a virtual laboratory rather than only viewing diagrams in a textbook. A tourist may take a virtual tour of a heritage site before visiting it in person. The three most common forms are Virtual Reality, Augmented Reality and Mixed Reality. Collectively, they are often described using the broader term Extended Reality (XR).
VR creates a computer-generated environment that surrounds the user, typically through a specialised headset. Users can explore and interact with a simulated space.
Example: Virtual laboratory training or a simulated historical environment.
AR adds digital information, graphics or objects to a view of the physical world, allowing users to see digital content alongside their surroundings.
Example: Directions or 3D learning objects displayed through a mobile device.
MR combines digital and physical environments, enabling digital objects to be positioned within and interact with the real surroundings.
Example: Inspecting a virtual machine model in a real workshop.
XR is the umbrella term for immersive reality technologies, including VR, AR and MR, and related interactive experiences.
Example: Training that combines virtual simulations with AR instructions.
Other Technologies in the Immersive Ecosystem
Allows viewers to look in different directions within a recorded scene and explore different parts of the environment. It can be used for virtual tours, educational field experiences and tourism.
Uses vibration, pressure or other touch-based feedback to make digital interactions feel more physical. It can be used in training, simulations and interactive experiences.
5. Applications of Immersive Technology in India
5.1 Education and Skill Development
Immersive learning can help students visualise difficult concepts and explore situations that are difficult to recreate in a classroom. AR/VR solutions can complement traditional teaching by offering interactive models, virtual simulations and digital learning experiences.
Researchers at IIT Madras are developing AR/VR-enabled learning solutions for rural schools. The initiative aims to improve secondary-level teaching and learning through immersive environments that cover subjects such as history, social science, science and languages.
How Immersive Learning Can Help
- Explore the solar system through three-dimensional simulations.
- Study human anatomy using interactive 3D models.
- Discover history through animated photographs, maps and archival documents.
- Practise selected procedures in virtual learning environments.
By making abstract concepts easier to visualise, immersive learning may enrich classroom experiences. Its effectiveness depends on appropriate content, device access, curriculum alignment and teacher preparation.
5.2 Heritage, Museums and Tourism
The Government is using digital technologies, including XR-related experiences, to make India's cultural heritage more accessible. The Ministry of Culture has adopted digitisation tools to document museum artefacts and improve how collections are presented to the public.
JATAN Software
Supports the digitisation of museum artefacts and their records. The backgrounder reports digitisation across eight national-level museums and two ASI museums.
Indian Museum, Kolkata
Digital heritage experiences include AI-based interactive features, AR tools and collaboration with Google Arts & Culture.
Hampi, Karnataka
Mobile-based virtual tours help visitors explore museum collections digitally.
Nalanda, Bihar
Digital tours offer another way to explore museum collections and cultural information.
The Museums of India digital repository makes digitised collections available online. These tools can complement physical museum visits and allow people to discover heritage from different locations.
Discover the museum through its online virtual tour.
5.3 Governance and Infrastructure Planning
Immersive technologies can support infrastructure planning through digital models and simulations. These tools allow planners to examine systems virtually, assess scenarios and study potential changes before making decisions in the physical world.
What Is a Digital Twin?
A digital twin is a virtual representation of a real-world object, system or place. Depending on its design, it can use real-world data to represent conditions, monitor changes and support analysis or simulation.
Example: A digital twin of a city can help planners study traffic patterns, transport networks or the possible impact of infrastructure projects.
The Department of Telecommunications launched the Sangam: Digital Twin initiative, which combines digital twin technology with 5G, the Internet of Things (IoT) and AI for infrastructure planning. Digital twin mapping is also supporting urban planning, including the Varanasi Urban 3D Spatial Planning project.
The Mobility Digital Twin showcased by the Department of Telecommunications at India Mobile Congress 2025 used telecom-derived mobility data to analyse travel patterns. Demonstrations in Vasant Kunj and Central Vista in Delhi examined commuting patterns and metro station catchment areas. In Ayodhya, mobility data was used to study tourist flows, travel modes and stay patterns.
The backgrounder describes an ambition to develop a National Digital Twin for major urban centres by 2035. This is a future goal, not a completed nationwide system.
5.4 Creative Economy, Gaming and Entertainment
Immersive technology is closely connected to India's Animation, Visual Effects, Gaming, Comics and Extended Reality ecosystem. Gaming, virtual production, animation and interactive media can create opportunities for programmers, digital artists, designers, storytellers and technical specialists.
2024 value to projected FY2029 value, as cited in the backgrounder.
National platforms such as the WAVES summit also showcase India's media, entertainment and creative technology capabilities to domestic and international audiences.
6. Government Initiatives Supporting Immersive Technology in India
India's immersive technology ecosystem is supported through the broader AVGC-XR framework, covering Animation, Visual Effects, Gaming, Comics and Extended Reality. The policy push connects creative education, startup development, innovation and production capabilities rather than relying on a single standalone immersive technology scheme.
6.1 AVGC Promotion Task Force
The Ministry of Information and Broadcasting constituted the AVGC Promotion Task Force in April 2022. It brings together representatives from the AVGC industry, academia and government to encourage coordinated sectoral development.
Its approach emphasises public-private collaboration, inter-ministerial coordination and an integrated strategy for developing India's creative technology ecosystem.
6.2 Indian Institute of Creative Technologies (IICT), Mumbai
Following recommendations for a National Centre of Excellence, the Government established the Indian Institute of Creative Technologies (IICT) in Mumbai in 2025. Its role is to develop skilled talent and strengthen education and innovation across animation, visual effects, gaming, comics and extended reality.
The backgrounder describes IICT's collaborations with global technology and media companies, including Google, Meta, Adobe and Netflix.
6.3 GENESIS: Startup Support
Gen-Next Support for Innovative Startups (GENESIS) scheme was approved by the Ministry of Electronics and Information Technology (MeitY) to strengthen the technology startup ecosystem, particularly in Tier-II and Tier-III cities.
Launched in 2022, the scheme aims to support around 1,600 technology startups over five years, as stated in the backgrounder. Its broader ecosystem includes startups working on immersive technologies such as AR, VR and spatial computing.
84 AR/VR Startups
Reported as supported through the MeitY Startup Hub ecosystem.
106 Incubators
Reported incubator network supporting startup development.
6.4 AVGC Content Creator Labs: Budget 2026–27
The Union Budget 2026–27 allocated ₹250 crore for AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges. IICT Mumbai is identified in the backgrounder as the nodal agency for planning, coordination and implementation.
| Component | Announced Scale | Purpose |
|---|---|---|
| Secondary schools | 15,000 | Practical creative technology learning |
| Colleges | 500 | Higher-level training and industry-relevant learning |
| Budget allocation | ₹250 crore | Support for establishing the labs |
| Nodal agency | IICT Mumbai | Planning and coordination |
The labs aim to give students hands-on experience in animation, visual effects, gaming and digital content creation. Practical learning can help students develop creative skills and understand industry tools. Outcomes will depend on implementation, access to equipment, teaching support and industry connections.
6.5 WaveX: Media-Tech Startup Accelerator
WaveX is a media-tech startup accelerator and incubator launched by the Ministry of Information and Broadcasting. It supports startups working in AVGC-XR and other emerging media technologies, helping them strengthen their solutions, develop market-ready products and explore growth opportunities.
7. State-Wise AVGC-XR Policies and Initiatives in India
Indian states are developing different approaches to strengthen the AVGC-XR sector. These include skills development, production infrastructure, investment incentives, startup support and creative technology education.
| State | Policy or Initiative | Key Focus |
|---|---|---|
| Karnataka | AVGC-XR Policy 3.0; KITVEN AVGC Fund | Skills, infrastructure, production grants and incentives. The source cites a ₹20-crore fund corpus. |
| Maharashtra | AVGC-XR Policy 2025 | A reported financial plan of ₹3,268 crore and long-term vision to 2050. |
| Telangana | IMAGE Policy 2016; IMAGE Tower | Animation, VFX, gaming, production infrastructure and training. |
| Tamil Nadu | AVGC-XR Policy 2026 | Targets reported in the source include 200+ startups, around two lakh jobs and up to 20% of India's AVGC-XR market by 2030. |
| Kerala | AVGC-XR Policy 2024 | Industry-aligned training, faculty development and a stated goal of 50,000 new jobs by 2029. |
| Madhya Pradesh | AVGC-XR Policy 2025 | Centres of Excellence, labs, skilling and investment incentives. |
| Uttar Pradesh | Proposed AVGC-XR Park in Jewar | Animation, VFX, gaming, motion capture, virtual production and XR. |
| Rajasthan | AVGC-XR Policy 2024 | Production incentives reported in the backgrounder, subject to eligibility conditions. |
| Gujarat | AVGC-XR policy development | Infrastructure, skills, startups and an existing education base. |
7.1 Karnataka
Karnataka's AVGC-XR Policy 3.0 focuses on skill development, infrastructure, production grants and financial incentives for eligible companies. The state also operates the KITVEN AVGC Fund, for which the backgrounder cites a ₹20-crore corpus.
7.2 Maharashtra
Maharashtra's AVGC-XR Policy 2025 outlines a reported financial plan of ₹3,268 crore and a vision extending to 2050. The policy aims to expand the state's creative technology ecosystem through support, infrastructure and sectoral development.
7.3 Telangana
Telangana's IMAGE Policy, introduced in 2016, established a framework for animation, visual effects, gaming and comics, anchored by Hyderabad's IMAGE Tower initiative.
The backgrounder describes an ecosystem of 150+ AVGC/VFX companies, 140+ gaming and animation companies, 30,000 direct jobs and 100 startups onboarded through STPI-IMAGE. These figures are reported sectoral indicators and should be read in the context of the source.
7.4 Tamil Nadu
Tamil Nadu's AVGC-XR Policy 2026 sets out targets of more than 200 startups, around two lakh jobs and up to 20% of India's AVGC-XR market by 2030, as reported in the backgrounder.
The policy also provides support for the ELCOT Viyan AVGC-XR Centre of Excellence in Chennai, with a proposed hub-and-spoke network involving Coimbatore, Madurai, Tiruchirappalli, Salem and Tirunelveli over the next three years.
7.5 Kerala
Kerala's AVGC-XR Policy 2024 focuses on building a specialised talent pipeline. It proposes industry-aligned job roles, faculty development and courses covering VR, AR, gaming, VFX and digital art from schools through higher education.
The backgrounder describes a mission to create 50,000 new jobs in the AVGC-XR industry by 2029. This is a policy target, not a guarantee of employment.
7.6 Madhya Pradesh
Madhya Pradesh's AVGC-XR Policy 2025 combines Centres of Excellence, AVGC-XR labs and targeted skills development with investment incentives. The policy also addresses capital investment, employment generation, production costs, quality certification and intellectual property creation.
7.7 Uttar Pradesh
Uttar Pradesh is developing a proposed AVGC-XR Park in Jewar, near Noida International Airport and the proposed International Film City. The planned facilities are intended to bring together animation, VFX, gaming, motion capture, virtual production and XR.
The project aims to attract investment, support startups, create skilled employment and strengthen the state's digital creative economy.
7.8 Rajasthan
Rajasthan announced its AVGC-XR Policy 2024 in the State Budget 2024–25. The backgrounder cites production incentives of up to ₹50 lakh for eligible animation, VFX, AR and VR projects and up to ₹1 crore for eligible game development. Actual benefits depend on the official policy's eligibility and conditions.
7.9 Gujarat
Gujarat is preparing a comprehensive AVGC-XR policy focused on infrastructure, skills development and startups, according to the backgrounder. The state also has an existing educational base, with 16 institutions reported to offer animation, VFX and gaming courses.
8. Building India's Immersive Technology Ecosystem
Immersive technologies represent more than a new entertainment medium. They can support India's creative economy, education system, cultural preservation, industrial training and infrastructure planning.
Research and Innovation
Strengthen research, product development and indigenous immersive technology capabilities.
Education and Skills
Expand practical training, accessible learning labs and industry-relevant education.
Creative Content
Develop high-quality Indian content, including experiences in regional languages.
Startups and Industry
Encourage collaboration between startups, academia, government and industry.
As India strengthens its AVGC-XR ecosystem through national and state-level efforts, it has an opportunity to expand its role in immersive content and innovation. Accessible education, responsible technology use, sustained investment and collaboration will be important to achieving this potential and supporting the vision of Viksit Bharat 2047.
Frequently Asked Questions (FAQs)
1. What are immersive technologies?
Immersive technologies create interactive digital experiences that can place users inside virtual environments or combine digital content with physical surroundings.
2. What is the difference between VR, AR and MR?
VR creates a largely virtual environment, AR overlays digital information on the real world, and MR integrates digital objects with physical surroundings.
3. What does XR stand for?
XR stands for Extended Reality, an umbrella term that includes Virtual Reality, Augmented Reality and Mixed Reality.
4. What is India's projected immersive technology market size in 2030?
The PIB backgrounder cites a projection of USD 7,818.7 million by 2030, with a projected CAGR of 29.8% from 2023.
5. What is the Indian Institute of Creative Technologies (IICT)?
IICT Mumbai is a National Centre of Excellence established in 2025 to support education, skills and innovation in the AVGC-XR sector.
6. What are AVGC Content Creator Labs?
They are planned labs for practical learning in animation, visual effects, gaming and digital content creation. The 2026–27 Budget allocation cited in the backgrounder is ₹250 crore for labs in 15,000 secondary schools and 500 colleges.
7. What is a digital twin?
A digital twin is a virtual representation of a real-world object, system or place. It can help users monitor conditions, analyse data and evaluate possible scenarios.
8. Which sectors can use immersive technology?
Potential applications include education, healthcare training, tourism, museums, gaming, entertainment, retail, manufacturing and infrastructure planning.
9. Does this article announce government jobs?
No. It explains technology developments, policies and ecosystem initiatives. It is not a recruitment notification and does not announce specific vacancies.
Official Source and References
Press Information Bureau (PIB), Government of India — “Immersive Technologies: Blending Physical and Virtual Worlds.”
Read the original PIB backgrounder
Additional references:
