Immersive Technologies are transforming India’s digital and creative economy. Read here to learn more.
The Ministry of Information and Broadcasting (MIB) is expanding India’s Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) ecosystem with a ₹250 crore allocation in the Union Budget 2026-27 to establish Content Creator Labs in 15,500 educational institutions, 15,000 schools and 500 colleges.
The initiative, coordinated by the Indian Institute of Creative Technologies (IICT), Mumbai, aims to develop students’ creative and technical skills and strengthen India’s position in the global immersive-technology industry.
What are Immersive Technologies?
Immersive technologies are a group of digital technologies that integrate physical and virtual environments to create interactive experiences. They engage human senses, particularly sight, sound and touch, to generate a heightened sense of presence and interaction.
They enable users not merely to view digital information but to experience and interact with digitally created environments.
The Extended Reality (XR) Continuum
Extended Reality (XR) is an umbrella term encompassing technologies that blend physical and digital environments.
Technology |
Meaning |
Example |
Virtual Reality (VR) |
Replaces the physical environment with a computer-generated, interactive 3D environment, generally accessed through a headset. |
Virtual laboratory experiments and flight simulators. |
Augmented Reality (AR) |
Overlays digital information, graphics or models onto the real-world environment. |
Mobile-based navigation and smart glasses. |
Mixed Reality (MR) |
Combines physical and digital environments, allowing virtual objects to interact dynamically with the real world. |
Interactive engineering design and industrial maintenance. |
Haptic Technology |
Uses vibrations, physical resistance and tactile feedback to simulate the sense of touch. |
Surgical simulators and virtual training systems. |
360-degree Video |
Captures an environment in all directions, allowing viewers to explore different perspectives. |
Virtual heritage tours and immersive documentaries. |
VR, AR and MR form the principal components of the XR continuum. Haptics and 360-degree video are complementary technologies that can enhance immersive experiences.
Growth Potential of Immersive Technologies in India
- Expanding market: India’s immersive-technology market is projected to grow from approximately $1.26 billion in 2023 to $7.82 billion by 2030, at a compound annual growth rate (CAGR) of 29.8%.
- Gaming industry: India’s gaming industry is projected to expand from $3.8 billion in 2024 to $9.2 billion by FY 2028–29.
- Educational transformation: The ₹250 crore allocation for Content Creator Labs is expected to introduce students to animation, gaming, digital content creation and immersive technologies.
- Digital infrastructure: The Department of Telecommunications’ proposed National Digital Twin initiative aims to develop digital representations of major urban centres by 2035.
Applications of Immersive Technologies in India
- Education and Skill Development
- Converts abstract concepts into interactive 3D visualisations, improving experiential learning and conceptual understanding.
- Enables virtual laboratories, simulated field visits and practical training without requiring expensive physical infrastructure.
- Can improve access to specialised learning resources in geographically remote areas.
Example: AR/VR-enabled educational modules can help students explore human anatomy, planetary systems and historical environments.
- Urban Planning and Infrastructure Management
- Digital twins create virtual representations of physical infrastructure by integrating data from sensors, the Internet of Things (IoT), Geographic Information Systems (GIS) and other sources.
- Urban authorities can simulate traffic movement, infrastructure demand, environmental changes and disaster scenarios before implementing projects.
- Helps improve resource allocation, infrastructure planning and disaster preparedness.
Examples: The Department of Telecommunications’ Sangam: Digital Twin initiative and Varanasi’s Urban 3D Spatial Planning project.
- Cultural Heritage Preservation and Tourism
- Enables the digital documentation of monuments, artefacts and archaeological sites.
- Provides virtual access to heritage locations, including sites that are geographically inaccessible or vulnerable to deterioration.
- Supports immersive tourism, cultural education and preservation of historical records.
Examples: The Ministry of Culture’s JATAN software for museum collection management and digital documentation, alongside AR-based heritage experiences at archaeological sites.
- Healthcare and Medical Training
- VR-based simulations provide training environments for surgery, emergency response and clinical procedures.
- AR can assist medical professionals by overlaying relevant anatomical information during procedures.
- Immersive environments can support rehabilitation, pain management and certain forms of psychological therapy.
- Defence and Industrial Training
- Enables realistic simulations for military training, equipment operation and emergency response.
- Supports virtual prototyping, remote maintenance and industrial safety training.
- Reduces the cost and risk associated with training in hazardous or complex environments.
- Creative Economy and Entertainment
- Supports animation, visual effects, gaming, virtual production and interactive storytelling.
- Enables filmmakers to use virtual studios, motion capture and real-time 3D environments.
- Creates opportunities for Indian studios to develop indigenous gaming intellectual property and compete in international markets.
Example: Uttar Pradesh’s proposed integrated AVGC-XR Park near the Noida International Airport and International Film City.
Major Government Initiatives
Initiative |
Key features |
Indian Institute of Creative Technologies (IICT), Mumbai |
Established in 2025 as a National Centre of Excellence for the AVGC-XR sector. It aims to promote specialised training, industry collaboration, research and entrepreneurship. |
Content Creator Labs |
₹250 crore allocation in Union Budget 2026–27 for setting up labs in 15,000 schools and 500 colleges to develop practical skills in creative technologies. |
GENESIS Scheme (MeitY) |
Supports technology startups and innovation, particularly in Tier-II and Tier-III cities. The programme’s support for AR/VR startups and technology incubators can strengthen regional innovation ecosystems. |
WaveX Media-Tech Incubator |
An MIB initiative supporting media and entertainment technology startups, including emerging solutions in immersive content and virtual production. |
State AVGC-XR Policies |
Karnataka, Maharashtra and Tamil Nadu are developing state-level frameworks to attract investment, establish infrastructure and promote creative technology industries. |
ESTIC-2026 |
The Emerging Science, Technology and Innovation Conclave provides a platform for discussions on emerging technologies, including generative XR and spatial computing. |
Challenges Associated with Immersive Technologies
- High Hardware Costs and Import Dependence
- Advanced VR headsets, near-eye displays, GPUs, motion-capture systems and spatial sensors remain expensive.
- Dependence on imported components increases production costs and exposes the sector to global supply-chain disruptions.
- High equipment costs can limit adoption in government schools and smaller institutions.
- Digital Divide and Connectivity Constraints
- High-quality immersive experiences require reliable connectivity, substantial computing power and low latency.
- Uneven access to high-speed internet and digital infrastructure can widen the gap between urban and rural institutions.
- Cloud-based rendering and real-time simulations may be difficult to deploy in areas with weak connectivity.
- Shortage of Skilled Professionals
- The industry requires specialised expertise in 3D modelling, animation, computer vision, spatial computing, game-engine development and virtual production.
- Conventional educational curricula may not adequately prepare students for these emerging roles.
- A shortage of trained faculty can also constrain the effective use of Content Creator Labs.
- Health and Ergonomic Concerns
- Prolonged VR use can cause cybersickness, eye strain, headaches, fatigue and disorientation.
- Children may be particularly vulnerable to inappropriate or excessive exposure.
- The absence of standardised guidelines on duration of use, age suitability and ergonomic design can create health and safety concerns.
- Data Privacy and Cybersecurity
- XR devices may collect sensitive information, including eye movements, facial expressions, voice, body movements and spatial maps of private environments.
- Such data can reveal behavioural patterns and personal characteristics.
- Unauthorised access, profiling and misuse of biometric information raise significant privacy and cybersecurity concerns.
- Content and Language Barriers
- High-quality immersive content requires substantial investment and specialised production capabilities.
- Limited availability of regional-language content may restrict adoption across India’s diverse population.
- Dependence on foreign platforms and proprietary software can also create technological and economic dependencies.
- Interoperability and Standardisation
- Different hardware manufacturers and software platforms may use incompatible formats and systems.
- The absence of common standards can restrict content portability, increase development costs and create vendor lock-in.
Way Forward
- Promote Indigenous XR Hardware Manufacturing
- Encourage domestic production of near-eye displays, optical lenses, spatial tracking sensors, haptic devices and advanced computing components.
- Consider targeted manufacturing incentives and support for research and development to reduce import dependence.
- Strengthen collaboration between startups, academic institutions and electronics manufacturers.
- Integrate XR into Education and Vocational Training
- Incorporate 3D modelling, animation, spatial design, game-engine development and digital content creation into STEM education.
- Align specialised training programmes with the National Skills Qualification Framework (NSQF).
- Train teachers and establish shared digital laboratories to make immersive learning accessible to rural and resource-constrained institutions.
- Develop Indigenous Content and Digital Asset Repositories
- Create open and interoperable repositories of Indian historical artefacts, monuments, cultural landscapes and educational resources.
- Promote regional-language immersive content and support independent creators.
- Establish appropriate licensing and intellectual property frameworks to encourage reuse while protecting creators’ rights.
- Establish Responsible XR and Data Protection Standards
- Develop guidelines for the collection, processing, storage and sharing of biometric and spatial data.
- Ensure compliance with the Digital Personal Data Protection Act, 2023, and applicable rules.
- Introduce age-appropriate design, informed consent, cybersecurity safeguards and health-related usage guidelines.
- Strengthen Research and Industry-Academia Collaboration
- Expand IICT’s role in specialised training, applied research and industry partnerships.
- Encourage collaboration among IITs, IIITs, universities, startups and technology companies.
- Support innovation in spatial computing, haptic interfaces, AI-powered content creation and real-time rendering.
- Improve Digital Infrastructure
- Strengthen broadband and 5G connectivity, particularly in rural and underserved regions.
- Promote edge computing to reduce latency in real-time immersive applications.
- Develop shared infrastructure and affordable subscription-based access models for educational institutions.
- Support Startups and Regional Innovation
- Expand incubation, seed funding and market-access opportunities for Indian AVGC-XR startups.
- Develop regional creative-technology clusters beyond major metropolitan centres.
- Facilitate international partnerships while ensuring the development of domestic intellectual property and technological capabilities.
Conclusion
Immersive technologies represent an important evolution from conventional screen-based digital interaction fs spatial computing, where people can interact with digital information in increasingly realistic and intuitive ways. Their applications extend beyond entertainment to education, healthcare, urban governance, industrial training and cultural preservation.
India’s opportunity lies in moving beyond being a large consumer market to becoming a global producer of indigenous XR hardware, creative intellectual property and immersive solutions. By combining educational initiatives such as Content Creator Labs with domestic manufacturing, skilled human resources, startup support and robust data protection, India can build an inclusive and globally competitive AVGC-XR ecosystem in alignment with the vision of Viksit Bharat 2047.





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