CHENNAI: Researchers at the Indian Institute of Technology Madras (IIT Madras) have endorsed Tamil Nadu’s ambitious plan to create 2 lakh jobs in the Extended Reality (XR) sector, while cautioning that long-term gains would depend on building capabilities in research, intellectual property and hardware manufacturing rather than relying solely on service-oriented employment.
In a report examining the State’s recently unveiled AVGC-XR Policy 2026, the researchers said Tamil Nadu’s target of generating 2 lakh jobs and capturing 20% of India’s XR market could serve as a model for the country’s broader deep-tech ambitions if backed by investments in innovation, skills and infrastructure.
The report, prepared by the Metaverse India Policy and Standards Committee of the Experiential Technology Innovation Centre (XTIC), noted that India’s XR ecosystem already includes more than 1,000 startups and a similar number of small and medium enterprises. A key recommendation is the adoption of a ‘50-50 workforce design principle’, under which at least half of future XR jobs should be concentrated in high-value segments such as original intellectual property creation, game-engine development, AI-driven immersive technologies and advanced research and development.
The State should establish a dedicated TN-XR Cloud to provide subsidised access to high-end GPU infrastructure for startups, researchers and educational institutions. We have identified a major education gap and recommend making academia the anchor of the XR innovation ecosystem
M Manivannan, Faculty Head, XTIC
The report also called for recognising XR hardware manufacturing as a strategic sector and leveraging Tamil Nadu’s electronics manufacturing base to develop indigenous head-mounted displays, trackers and haptic devices.
M Manivannan, Faculty Head, XTIC, said, “The State should establish a dedicated TN-XR Cloud to provide subsidised access to high-end GPU infrastructure for startups, researchers and educational institutions. As a natural extension of the current AI wave, the XR wave is imminent. We have identified a major education gap and recommend making academia the anchor of the XR innovation ecosystem.”
The report further proposed a State-wide XR curriculum framework, a dedicated TN-XR Fellowship and an integrated XR Corridor linking innovation centres, skill-development hubs and manufacturing clusters. It also highlighted opportunities in healthcare, education, defence and manufacturing, saying a stronger XR ecosystem could create high-skilled employment while improving access to services and supporting MSME growth.