IIT Madras Report Projects 2 Million XR Jobs in India by 2030, Calls for Dedicated XR Superhighway

India’s Extended Realities (XR) industry could emerge as one of the country's most significant technology-driven employment generators over the next decade, with the potential to create around 2 million high-value jobs by 2030, according to a new study released by the Experiential Technology Innovation Centre (XTIC) at IIT Madras.

The report, published on Monday, evaluates the opportunities and challenges associated with the implementation of the Tamil Nadu AVGC-XR Policy 2026 and outlines a comprehensive roadmap to strengthen India’s position in the rapidly evolving global XR market.

Extended Reality, which encompasses Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), and immersive digital technologies, is increasingly being adopted across sectors including healthcare, education, manufacturing, entertainment, defence, retail, and industrial training.

Understanding the Growth Potential of India’s XR Industry

XR Emerging as a Strategic Technology Sector

The report highlights that India is well-positioned to become a major player in the global XR ecosystem due to its large technology talent pool, growing startup landscape, and expanding digital infrastructure.

According to the study, more than 1000 startups and 1000 small and medium enterprises (SMEs) are already active in the XR domain, creating a strong foundation for future growth.

As global demand for immersive technologies accelerates, industries are increasingly adopting XR solutions for simulation, training, digital twins, remote collaboration, gaming, and customer engagement.

Why XR Matters for the Future Economy

XR technologies are expected to play a critical role in the next phase of digital transformation by combining artificial intelligence, cloud computing, advanced graphics processing, and immersive user experiences.

The IIT Madras report suggests that the sector can become a major contributor to India's innovation economy while generating high-skilled employment opportunities across multiple domains.

Tamil Nadu’s XR Vision Receives Support, But With Important Recommendations

Ambitious Targets Under AVGC-XR Policy 2026

The study acknowledges Tamil Nadu’s ambitious objective of capturing 20 per cent of India’s XR market while creating 200,000 service-oriented jobs through the state's AVGC-XR Policy 2026.

AVGC stands for Animation, Visual Effects, Gaming, Comics and Extended Reality, a sector increasingly viewed as a major driver of digital innovation and creative industries.

Concern Over Service-Only Growth Model

While appreciating the state's vision, the report cautions that depending primarily on a "service provider" model could restrict long-term value creation and reduce India's ability to compete globally.

Researchers argue that merely providing outsourcing and support services may not be sufficient for building a sustainable and globally competitive XR ecosystem.

Recommendation for an Integrated XR Corridor

Building an “XR Corridor” or “XR Superhighway”

One of the report's most significant recommendations is the creation of an integrated “XR Corridor” or “XR Superhighway”.

What Would the XR Superhighway Include?

The proposed ecosystem would bring together:

XR Innovation Centres

Dedicated hubs focused on developing new XR applications, platforms, and technologies.

Skill Development Institutions

Training centres designed to prepare professionals for emerging careers in immersive technologies.

Manufacturing Facilities

Production units focused on XR hardware and supporting technologies.

The report argues that integrating these elements into a single ecosystem could significantly accelerate innovation and commercialization.

Focus on Innovation and Intellectual Property Creation

50-50 Workforce Design Principle

The IIT Madras study recommends adopting a 50-50 workforce design principle to ensure long-term competitiveness.

Under this approach:

Half of XR Jobs Should Focus on Advanced Innovation

At least 50 per cent of the projected 2 million XR jobs should be concentrated in areas such as:

Game Engine Development

Development of the software frameworks that power immersive digital experiences.

Original Intellectual Property (IP) Creation

Creating proprietary technologies, platforms, and content rather than relying solely on outsourced projects.

Research and Development

Investing in breakthrough innovations that can strengthen India's technological leadership.

AI-Driven Immersive Technologies

Combining artificial intelligence with XR applications to create smarter and more interactive experiences.

Experts believe this balanced workforce strategy could help India move up the global value chain.

Strengthening India’s XR Hardware Manufacturing Capabilities

Reducing Dependence on Imports

Another key recommendation focuses on building indigenous XR hardware manufacturing capabilities.

The report suggests leveraging Tamil Nadu's established electronics and manufacturing corridors to produce critical XR components domestically.

Key Hardware Segments Identified

Head-Mounted Displays

Devices used in virtual and mixed reality environments.

Motion Tracking Systems

Technologies that enable precise user movement tracking.

Haptic Interfaces

Systems that provide tactile feedback and improve immersion.

Developing local manufacturing capabilities could reduce import dependence while positioning India as an important player in the global XR hardware supply chain.

Proposal for a Dedicated “TN-XR Cloud”

Expanding Access to High-End Computing Infrastructure

Discussing the infrastructure requirements for XR innovation, M. Manivannan, faculty member at XTIC, stated:

“We propose the creation of a State-level compute infrastructure such as a ‘TN-XR Cloud’, which would provide subsidised access to high-end Graphics Processing Units (GPUs)”.

Why GPU Access Matters

Modern XR applications rely heavily on advanced graphics processing and AI computation. However, access to high-performance computing resources remains expensive for startups, researchers, and academic institutions.

A shared cloud infrastructure could significantly reduce development costs and encourage experimentation.

Academia as the Foundation of XR Innovation

Universities Could Drive the Next Wave of XR Growth

The report also emphasizes the importance of placing academic institutions at the centre of India’s XR innovation ecosystem.

Universities and research centres can contribute through:

• Fundamental research.
• Talent development.
• Prototype creation.
• Industry partnerships.
• Technology commercialization.

According to the study, stronger collaboration between academia, industry, and government could accelerate the development of globally competitive XR solutions.

Policy Challenges and Governance Gaps

Blind Spots Identified by Researchers

While recognizing the strengths of the Tamil Nadu policy framework, the report points to several areas requiring additional attention.

AI-Generated XR Content Regulations

Researchers noted the absence of a dedicated framework governing AI-generated assets used in XR environments.

Metaverse Governance Standards

The report also highlights the need for governance mechanisms covering:

Child Safety

Protection measures for younger users within immersive digital environments.

Data Privacy

Ensuring secure handling of user data.

Ethical Use of Virtual Spaces

Establishing standards for responsible and safe participation in metaverse platforms.

Addressing these issues early could help create a more sustainable and trustworthy XR ecosystem.

Conclusion

The IIT Madras XTIC report presents a compelling vision for India's Extended Reality sector, projecting the creation of 2 million high-value jobs by 2030. While Tamil Nadu’s AVGC-XR Policy 2026 provides a strong foundation, the study argues that long-term success will depend on moving beyond a service-driven model toward innovation-led growth focused on intellectual property, research, AI-powered immersive technologies, and domestic hardware manufacturing.

Recommendations such as the creation of an “XR Corridor”, a “TN-XR Cloud”, and a balanced workforce strategy could significantly enhance India’s competitiveness in the global XR market. As industries increasingly adopt immersive technologies, India has an opportunity to emerge as a global hub for XR innovation, manufacturing, and talent development, provided it invests strategically in infrastructure, governance, and research ecosystems.