How 2025 Redefined India’s Immersive Future and Why 2026 Belongs to the Builders

Hello XROM Readers, Make 2026 count — innovate, explore, build, learn, and play a role in making the world better than it was today.

My journey in XR started in 2015 & I have long championed the power of Technology Convergence. For years, through my podcasts 1CW + XROM and the pages of XROM, we discussed the "what ifs." But 2025 was the year the theory became reality. 2025 was the year we witnessed the true XR + AI convergence.

The Resurrection: Why XR Didn’t Die

Earlier this year, media pundits and the general public were quick to write the obituary for Extended Reality. The narrative was simple: Generative AI can do everything an XR developer can do, therefore XR is obsolete. They were wrong.

Instead of killing XR, AI became its greatest ally. We witnessed the democratization of world-building. Tools like Genie 3, Marble, and Hunyuan World 1.0 transformed passive consumers into active creators. The vision of an open, interoperable Metaverse—reminiscent of the Oasis in Ready Player One—is no longer a pipe dream; it is being built right now, asset by asset, by people like you.

We are inching closer to that monumental transition from flat mobile interfaces to Heads-Up 3D Displays. This shift will be "one small step for man, one giant leap for mankind," fundamentally altering enterprise, healthcare, gaming, and entertainment.

The Great Indian Filter: A Maturing Ecosystem

India’s XR industry has weathered its boom-and-bust cycle. In 2016, we started with barely 10 startups. The "Metaverse Hype" saw that number balloon to over 1,000. By the end of 2025, the dust has settled. We are down to a few hundred serious players—the believers who stayed the course while others pivoted.

Between January and December 2025, the Indian ecosystem matured from "hype" to "high value." This transformation was driven by three pillars: Government Policy, Indigenous Hardware, and Enterprise Innovation.

1. The Backbone: Policy, Funding, and IICT

The Indian government’s commitment to immersive tech became undeniable in 2025. The crowning achievement was the formalization of the Indian Institute of Creative Technology (IICT) during WAVES 2025.

Modeled after the IITs and IIMs, the IICT is India’s national center for AVGC-XR. With a 10-acre campus in Mumbai Film City and a ₹400 crore initial investment, it is the new foundry for India’s creative tech talent. Furthermore, strategic collaborations with titans like Google, Meta, NVIDIA, and JioStar have created a pipeline for curriculum development and startup funding, aiming to replicate India’s IT success story in the creative domain.

State-Level Charge: Maharashtra took the lead with the approval of its AVGC-XR Policy 2025 in September. With an allocation of ₹3,268 crore ($390 million), the state aims to attract $6 billion in investments and create 200,000 high-tech jobs over the next 25 years.

2. The Hardware Hustle: Made in India

While the software soared, hardware faced the classic challenges of R&D.

• Jio-Tesseract: The team has been relentless in pushing the Jio Immerse App and Jio Dive, capitalizing on the cricket craze (IPL). However, the long-awaited MR Glasses saw delays as the industry’s gaze shifted temporarily to AI. With Jio-Tesseract now absorbed fully into Jio Platforms, expectations are high for a defining glasses launch in 2026.

• AjnaLens & QWR: These startups proved that India can build rugged, localized hardware. Focusing on enterprise needs and vernacular support, they carved a niche where global headsets failed. The buzz for 2026 surrounds AjnaLens’ partnership with Lenskart, which promises to bring AI-powered XR glasses to the mainstream consumer.

3. The Star Players: Startups That Defined 2025

The "survivors" of the hype cycle didn't just survive; they thrived by solving real problems.

• AutoVRse: Cementing their status as pioneers, they deployed AI-powered VR safety training at scale. Their collaboration with JSW Steel saw thousands of workers trained monthly in local languages via Meta Quest 3 headsets. Their VRseBuilder platform has set the standard for rapid digital twin development.

• Flam: In a massive win for the ecosystem, Flam secured $14 million in Series A funding (led by RTP Global), bringing their total raise to $22 million. They are now positioning themselves as global leaders in immersive brand experiences with eyes on Europe and the Middle East.

• Gamitronics (PartyNite): They expanded beyond a platform into a cultural phenomenon, hosting large-scale immersive concerts and film launches. They proved that an Indian-built metaverse can stand toe-to-toe with global giants.

• Shemaroo Entertainment: Bridging traditional media and future tech, Shemaroo launched ShemarooVerse on the Jio Immerse app, creating one of the largest virtual entertainment worlds in the region.

• EdTech Innovators: Startups like FotonVR, GuruVR, and Metabook XR moved beyond the "wow factor" to prove that immersive education is scalable and essential.

The Road to 2026

2025 was the year the foundation was poured. The convergence of visionary government policy (IICT, Maharashtra Policy), global partnerships, and the resilience of Indian entrepreneurs has set the stage.

As we look to 2026, the focus shifts to building. We need to strengthen our indigenous hardware capacity, ensure privacy in these new worlds, and continue upskilling our workforce. The experimentation phase is over; the adoption phase has begun.

The world is watching. Let’s make 2026 the year India leads the narrative.

Let’s build a world better than it was today.