India's push for AVGC-XR education aims to prepare students for future opportunities in gaming, animation and immersive media. (Images: X)
New Delhi: India’s immersive technology industry is poised for significant expansion, with the market projected to reach $7.82 billion by 2030, registering a compound annual growth rate (CAGR) of 29.8 per cent, according to an official factsheet released. The projection places India among the fastest-growing immersive technology markets in the Asia-Pacific region, reflecting the country’s expanding digital infrastructure, growing consumer base and increasing adoption of online commerce.
The development also highlights the potential of technologies such as Virtual Reality (VR), Augmented Reality (AR) and Mixed Reality (MR) to reshape how people interact with digital content across industries.
India’s expanding digital ecosystem is creating fresh opportunities for immersive technologies across consumer services, education, manufacturing and creative industries. The country’s growing middle class and wider use of e-commerce platforms are among the factors supporting this expansion. Continued investment in research, startups, skilled professionals, digital content and homegrown technologies could further strengthen India’s role in the global immersive technology industry.
The shift could also create opportunities for businesses developing interactive applications, virtual environments and next-generation digital experiences.
Immersive technology refers to digital solutions that create interactive environments and experiences designed to make users feel more connected to virtual or digitally enhanced surroundings.
The three major categories include:
Virtual Reality (VR): Creates computer-generated environments that users can explore through compatible headsets and devices.
Augmented Reality (AR): Adds digital elements, such as images and information, to views of the real world.
Mixed Reality (MR): Combines physical and digital environments, allowing virtual elements to interact with real-world surroundings.
These technologies are collectively known as extended reality (XR). Their applications range from immersive learning and industrial training to gaming, product visualisation and digital entertainment.
India is strengthening its animation, visual effects, gaming, comics and extended reality ecosystem through initiatives focused on creative education, talent development and innovation. The Indian Institute of Creative Technologies (IICT), designated as a National Centre of Excellence is working with international technology and entertainment companies, including Google, Meta, Adobe and Netflix.
The collaboration aims to support industry-relevant education, improve professional skills and encourage innovation across creative technology segments. According to the factsheet, IICT had introduced 18 courses covering different areas of the AVGC-XR industry by March 2026, with more than 135 students enrolled.
The growth outlook for immersive technology comes alongside rising expectations for India's gaming industry. A separate report cited in the factsheet projects the gaming market to expand from $3.8 billion in 2024 to $9.2 billion by the financial year 2028–29. Gaming, interactive storytelling and virtual experiences could contribute to the broader development of India's digital entertainment economy, creating opportunities for content creators, developers and technology businesses.
Events such as the WAVES summit are also providing platforms to showcase the country's creative industries and immersive media capabilities to international audiences. Budget 2026–27 Allocates Rs 250 Crore for AVGC Content Creator Labs. The Union Budget for 2026–27 earmarked Rs 250 crore for the development of AVGC Content Creator Labs across 15,000 secondary schools and 500 colleges, according to the factsheet.
The initiative is intended to expand access to creative technology education and introduce more students to skills relevant to animation, gaming, visual effects and related digital industries. Developing a larger pool of trained professionals could help meet the future demand for specialised talent as immersive technology adoption increases.
India's established digital public infrastructure is providing a foundation for the next stage of digital services. Platforms such as UPI, Aadhaar, DigiLocker, UMANG and BHASHINI have helped broaden access to payments, identity services, digital documents and online public services.
The next phase of development could focus on making digital interactions more visual, interactive and engaging rather than limiting them to conventional screens and interfaces. Advances in artificial intelligence, faster connectivity and computing capabilities are helping make these experiences increasingly practical across different sectors.
The projected expansion of the immersive technology market presents opportunities for startups, technology developers, educational institutions and creative professionals. Investment in research, local content production, workforce training and indigenous technology development will be important in translating market potential into long-term industry growth.
As businesses explore new ways to combine digital information with real-world experiences, immersive technology could become an increasingly important part of India's broader digital economy by the end of the decade.
