The Builders of the Metaverse: Inside India’s XR Development Ecosystem

13^th November, 2025

XR development in India has shown remarkable growth and become the life-blood of the country's technological progress. The All India Council of Technical Education (AICTE) has recognized AR and VR as one of the most innovative technologies in the nation.
The XR ecosystem has received impressive support from various quarters. Maharashtra's groundbreaking 2025 AVGC-XR policy backs the industry with ₹3,268 crore ($3.67B) and aims to attract investments of ₹50,000 crore ($56B). The policy now classifies XR technology as an essential service and infrastructure sector. Government initiatives like iDEX are boosting defense applications with funding up to ₹1.5 crore per project. This has helped nurture over 1,000 defense tech startups that are reshaping multiple sectors. Experts believe XR will become an integral part of daily life in India by 2025.
Let's take a closer look at India's vibrant XR developer community. We'll explore the government policies that stimulate this growth, highlight innovative XR startups, and see how the talent pipeline supports this digital transformation.

India’s XR Ecosystem: A Growing Force

XR development in India has grown into a strong ecosystem. The technology creates digital experiences that blur physical and virtual worlds in ways traditional tech sectors cannot match.

The rise of immersive tech in India

The Indian XR industry has moved beyond experimental projects to real business applications. High smartphone usage and cheap internet access have created perfect conditions for XR innovations. The Indian AR and VR market will grow at a CAGR of 38.29% until 2027, making it one of the world's fastest-growing XR markets.
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The country's talent pool has expanded with many developers focusing on immersive technologies. Tech hubs like Bangalore, Hyderabad, and Pune now host incubators and accelerator programs that support XR startups.

How XR blends AR, VR, and MR

XR (Extended Reality) covers three main immersive technologies:
-Virtual Reality (VR): Creates fully immersive digital environments that replace the physical world
-Augmented Reality (AR): Overlays digital content onto the physical world to enhance real environments
-Mixed Reality (MR): Combines physical and digital elements where virtual objects interact with the real world
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XR's power comes from these technologies working together or independently based on needs. Indian developers create applications that blend these modes naturally. Their solutions work for industries from healthcare to manufacturing.

XR's role in India's digital economy

XR technology plays a key role in India's digital economy. It creates jobs for developers, designers, and content creators while changing how traditional industries work. Healthcare providers train surgeons with XR, real estate companies give virtual property tours, and schools use immersive learning experiences.
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Remote work has become common, and Indian-made XR collaboration tools now reach global markets. XR helps transform many sectors, making it central to India's digital growth story rather than just another tech trend.

Government Support and Policy Push

The Indian government has created resilient policy frameworks that will change the XR industry and boost the digital economy while creating substantial job opportunities.

AVGC-XR Policy 2025 and its goals

The Maharashtra Cabinet approved the complete AVGC-XR Policy 2025. This policy establishes a 25-year roadmap with a financial plan of ₹3,268 crore. The state wants to become a global hub for Animation, Visual Effects, Gaming, Comics, and Extended Reality sectors. The main goals include attracting investments worth ₹50,000 crore and creating over 2 lakh high-tech jobs.
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Maharashtra plans to expand its AVGC-XR sector from ₹25,000 crore to ₹65,000 crore within five years. The state targets an annual growth rate of 25%. The government will develop specialized AVGC-XR parks in Mumbai Film City, Navi Mumbai, Nashik, and Nagpur to stimulate this growth.

iDEX and defense innovation programs

Innovations for Defense Excellence (iDEX) serves as a vital government initiative that promotes XR development in India's defense sector. The program received ₹498.78 crore for 2021-2026 and supports nearly 300 startups and 20 partner incubators through the Defense Innovation Organization.
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Startups can receive grants up to ₹1.50 crore, with iDEX Prime cases eligible for up to ₹10 crore. This funding has helped accelerate the development of XR-powered solutions. These solutions boost situational awareness, mission rehearsal, and command capabilities for India's armed forces.

XR as an essential service and infrastructure sector

The Maharashtra Cabinet's decision to recognize AVGC-XR as an essential service marks a radical alteration in how people notice creative technology. XR studios can now operate 24/7 across all zones with state-level policy support.
The essential service status offers several benefits.

Studios receive relaxation in stamp duty, reduced power tariffs, and permission to set up operations in any zone—including residential, no-development, and green zones. XR technology has evolved beyond entertainment to become a core economic driver and job creator. This recognition strengthens India's digital infrastructure development.

XR Startups Driving Innovation

Indian startups are leading XR innovation with solutions that tackle real-life challenges in multiple sectors. These companies help establish India as a global hub for immersive technology development faster than ever before.

Startups building training simulators

Skillveri guides the industry with XR skill-training platforms that deliver immersive experiences for the manufacturing sector through accurate scorecard measurements.
Their advanced simulators help industries and institutions provide high-quality training at lower costs for welding, spray painting, HVAC, and solar panel installation.
Simbott has completed over 150 projects worldwide, and their welding and spray painting simulators have gained popularity in manufacturing, automotive, and aerospace industries.

Immersive tech for defense and aerospace

Defense sector companies have adopted XR technology through innovative startups. Mumbai-based Parallax Labs created India's first personal flight simulator that now operates at naval aviation units in Goa and Nashik.
Decorated Army veterans founded Edgeforce Solutions to develop AI-driven defense technologies from autonomous vehicles to immersive combat simulators that replicate real-life tactical complexity.
Bala Aatral Solutions earned an iDEX grant of ₹3 crore to develop VR-based helicopter pilot training simulators.

Real-time visualization and command tools

TechViz creates advanced visualization solutions that change project reviews and collaboration methods.
Their VR software lets teams visualize, simulate, and work together immediately on complex projects like warship and submarine construction.
Lockheed Martin's Vast™ Experience System demonstrates India's growing expertise in multi-domain mission visualization through interactive 3D environments.

XR in surveillance and threat detection

Optimized Electrotech combines multispectral imaging with AR features to create intelligent threat detection and surveillance systems for borders and critical infrastructure.
National security applications rely on these technologies where immediate situational awareness helps prevent potential risks.

Building Talent and Developer Communities

India's XR revolution thrives on its growing talent ecosystem. Communities and educational initiatives are the foundations of this emerging sector.

XR developer community and upskilling programs

IIT Madras hosts the Consortium for VR/AR/MR Engineering Mission (CAVE), which serves as India's leading XR innovation hub. This hub connects academia, industry, and government.
Bharat XR has become a community-driven movement that enables creators through practical experience with SnapAR, WebAR, and Unity.

XR courses and certifications in India

Educational opportunities are growing faster than ever. IIT Jodhpur's MDes in XR Design program gives students technical expertise in VR/AR/MR design and development tools. Companies expect Extended Reality to revolutionize immersive experiences by 2025, with over 85% creating jobs for specialists like XR developers, VR engineers, and AR project managers.

Role of academic institutions and industry mentors

Through collaboration with Snapchat and Unreal Engine, Hero Vired delivers detailed XR training. These programs blend theoretical knowledge with ground applications in healthcare, entertainment, and education sectors.

Bootcamps and hands-on learning platforms

C-DAC ACTS Pune has successfully trained more than 1,500 participants. Their intensive AR/VR bootcamps span fourteen colleges. These practical learning initiatives create a resilient infrastructure of talent ready to solve ground XR challenges.

Conclusion

India is pioneering a digital revolution as XR technology changes many sectors. The ecosystem grows stronger through government policies, state-of-the-art startups, and talent growth programs. Maharashtra's AVGC-XR policy shows the nation's dedication with its ₹3,268 crore allocation and aims to create 2 lakh high-tech jobs.
XR's classification as an essential service signals a major change in how creative technologies boost economic growth. This recognition goes beyond administrative labels and gives real benefits through lower power costs, stamp duty relief, and flexible zoning rules.
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Indian startups have turned these chances into real solutions. Skillveri's manufacturing training platforms and Parallax Labs' flight simulators solve real problems while gaining international recognition. These achievements show that XR applications reach way beyond entertainment into defense, healthcare, and education.
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The talent ecosystem is the foundation of this success story. IIT Jodhpur and IIT Madras now teach specialized XR programs. Community projects like Bharat XR create available entry points for new developers. This educational base will give a steady supply of skilled professionals to meet the industry's growing needs.
XR technology will blend into everyday Indian life by 2025. India combines technical expertise, government support, and entrepreneurial drive to create ideal conditions for progress. The country's XR development ecosystem represents technological growth, economic potential, and creative expression nationwide.