Immersive Tech Push: Rs 250 Crore for AVGC Creator Labs
The Union Budget 2026-27 set aside Rs 250 crore for AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges, with IICT Mumbai as nodal agency.

Why in News
A PIB backgrounder of 26 October 2026 mapped India's immersive technology push, from the Rs 250 crore set aside in the Union Budget 2026-27 for AVGC Content Creator Labs to the market's projected rise to USD 7,818.7 million by 2030.
Immersive technologies are spreading through India's classrooms, museums, city offices and studios, and the Ministry of Information and Broadcasting is backing them through the AVGC-XR ecosystem, which covers Animation, Visual Effects, Gaming, Comics and Extended Reality. The sharpest signal of intent is money: the Union Budget 2026-27 set aside Rs 250 crore for AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges, with the Indian Institute of Creative Technologies (IICT), Mumbai, as the nodal agency for planning and rollout.
What the technologies are
Extended Reality (XR) is the umbrella term for three forms. Virtual Reality builds a wholly digital surrounding; Augmented Reality lays digital information over the real world; and Mixed Reality lets digital objects interact with physical ones. Alongside them sit 360-degree video, which lets a viewer look in every direction, and haptic technology, which returns touch through vibration and pressure.
The market and the money
India's immersive technology market earned USD 1,259.5 million in 2023 and is projected to reach USD 7,818.7 million by 2030, a compound annual growth rate of 29.8 per cent, which would make India the fastest-growing regional market in Asia Pacific. The gaming segment alone is expected to climb from 3.8 billion dollars in 2024 to 9.2 billion dollars by FY29.
The institutions behind it
The AVGC Promotion Task Force was set up by the Ministry in April 2022 on three principles: public-private collaboration, inter-ministerial convergence and an integrated approach. On its advice the Government created a National Centre of Excellence, which took shape as IICT in 2025; as of March 2026 it ran 18 courses with over 135 students, working with Google, Meta, Adobe and Netflix. MeitY's GENESIS scheme, launched in 2022 for Tier-II and Tier-III cities, aims to support about 1,600 tech startups over five years and currently backs 84 AR/VR startups and 106 incubators. WaveX is the Ministry's media-tech accelerator.
Where it is already in use
The Department of Telecommunications runs Sangam: Digital Twin, tying digital twins to 5G, IoT and artificial intelligence; the Varanasi Urban 3D Spatial Planning project uses the idea, and a National Digital Twin for major urban centres is planned by 2035. In heritage, JATAN software has digitised eight national museums and two Archaeological Survey of India museums, whose collections sit in the Museums of India repository, while ASI museums at Hampi and Nalanda offer mobile virtual tours. IIT Madras is building AR and VR lessons for rural schools, including an application that opens up 500 years of Indian history.
States with their own policies
| Maharashtra | AVGC-XR Policy 2025 with a financial plan of Rs 3,268 crore |
| Karnataka | Policy 3.0 and the KITVEN AVGC Fund of Rs 20 crore |
| Tamil Nadu | Policy 2026 targeting about 2 lakh jobs by 2030 |
| Kerala | Policy 2024 aiming at 50,000 new jobs by 2029 |
Important Facts
| Budget allocation | Rs 250 crore in the Union Budget 2026-27 for AVGC Content Creator Labs |
|---|---|
| Coverage of labs | 15,000 secondary schools and 500 colleges |
| Nodal agency | Indian Institute of Creative Technologies (IICT), Mumbai |
| AVGC-XR | Animation, Visual Effects, Gaming, Comics and Extended Reality |
| Forms of XR | Virtual Reality, Augmented Reality and Mixed Reality |
| Market size | USD 1,259.5 million in 2023, projected USD 7,818.7 million by 2030 |
| Growth rate | CAGR of 29.8 per cent, fastest-growing market in Asia Pacific |
| Task Force | AVGC Promotion Task Force, constituted in April 2022 by MIB |
| GENESIS scheme | MeitY, launched 2022, about 1,600 startups and 106 incubators |
| Digital twin | Sangam: Digital Twin of DoT; National Digital Twin planned by 2035 |
Exam Point of View
Learn the expansion of AVGC-XR and of XR itself, the three forms VR, AR and MR, the Rs 250 crore Budget 2026-27 allocation with 15,000 schools and 500 colleges, IICT Mumbai as nodal agency and a National Centre of Excellence set up in 2025, the market figures of USD 1,259.5 million in 2023 and USD 7,818.7 million by 2030 at 29.8 per cent CAGR, the Task Force of April 2022, GENESIS with about 1,600 startups and 106 incubators, Sangam: Digital Twin and JATAN software.
Practice Questions
How much has the Union Budget 2026-27 allocated for AVGC Content Creator Labs?
- A.Rs 150 crore
- B.Rs 250 crore
- C.Rs 500 crore
- D.Rs 1,000 crore
Show answer
The allocation is meant to set up Animation, Visual Effects, Gaming and Comics Content Creator Labs in 15,000 secondary schools and 500 colleges across the country, and the Indian Institute of Creative Technologies in Mumbai will plan, coordinate and implement the initiative as the nodal agency.
Read the full explanation →Which of these is NOT one of the three forms of Extended Reality (XR)?
- A.Virtual Reality
- B.Augmented Reality
- C.Haptic Reality
- D.Mixed Reality
Show answer
Extended Reality is the umbrella term for technologies that combine real and digital environments through computer systems and wearable devices, and it has three members.
Read the full explanation →Which ministry constituted the AVGC Promotion Task Force in April 2022?
- A.Ministry of Electronics and Information Technology
- B.Ministry of Information and Broadcasting
- C.Ministry of Communications
- D.Ministry of Culture
Show answer
It constituted the AVGC Promotion Task Force in April 2022, bringing together industry, academia and Government, and guided it by three principles: public-private collaboration, inter-ministerial convergence and an integrated approach to the sector.
Read the full explanation →Frequently Asked Questions
What does AVGC-XR stand for?
Animation, Visual Effects, Gaming, Comics and Extended Reality. The Ministry of Information and Broadcasting promotes the sector as one ecosystem rather than through a standalone scheme.
How much did the Union Budget 2026-27 give to AVGC Content Creator Labs?
Rs 250 crore, for labs in 15,000 secondary schools and 500 colleges. IICT Mumbai is the nodal agency for planning, coordinating and implementing the initiative.
How big is India's immersive technology market?
It generated USD 1,259.5 million in 2023 and is projected to reach USD 7,818.7 million by 2030, growing at 29.8 per cent a year, the fastest in Asia Pacific.
What are the three forms of Extended Reality?
Virtual Reality, which creates a fully digital environment; Augmented Reality, which adds digital content over real surroundings; and Mixed Reality, where digital objects interact with physical ones.
Sources
- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2328338 (opens in a new tab) — Press Information Bureau
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