·PIB·15 marks·250–350 wordsPolityEconomyS&T

Examine the role of the AVGC-XR sector in India's orange economy. How far can institutions such as IICT make India a global creative-technology hub?

New · District CollectorCan you hold the district for 72 hours?Floods, a heatwave, an outbreak, a grievance queue. Take the decisions, see the consequences.Play →
In this answer
  1. Role of AVGC-XR in the orange economy
  2. IICT: strengths
  3. IICT: limits

The orange economy is the part of the economy built on creativity, culture and intellectual property (IP). AVGC-XR (Animation, Visual Effects, Gaming, Comics and Extended Reality) is its most technology-heavy segment. India's immersive-tech market is projected to grow from USD 1,259.5 million (2023) to USD 7,818.7 million by 2030, a CAGR of 29.8% [1]. IICT can drive this growth, but it cannot make India a global hub by itself.

Role of AVGC-XR in the orange economy

  • Jobs: the sector may need about 2 million professionals by 2030 [2].
  • IP and exports: the AVGC Task Force (Dec 2022) proposed a funded National AVGC-XR Mission to move India from outsourced service work to owning its IP ("Create in India") [3].
  • Skilling from school level: Budget 2026–27 gave ₹250 crore for Content Creator Labs in 15,000 secondary schools and 500 colleges [2].
  • Spillovers into other sectors: virtual labs in education, immersive training in healthcare and virtual heritage tourism [1].

IICT: strengths

  • Industry-linked PPP: a Section 8 company with FICCI and CII as partners. It works with Google, Meta, NVIDIA and Microsoft on curricula and tools [4].
  • Early results: by March 2026 it had 18 courses, 136 students and 15 Train-the-Trainer graduates [5].
  • Reach: it uses a hub-and-spoke model [4] and is the nodal agency for the labs [6].

IICT: limits

  • Scale gap: 136 students [5] is very small against a need for 2 million workers [2].
  • Slow rollout: in April 2026 the labs were still at the stakeholder-consultation stage [6], and the spoke institutions have not been named.
  • Weak basics in schools: only 67.4% of schools have internet and 69.9% have computers (UDISE+ 2025-26) [7].
  • Task Force recommendations still pending: standard curricula and a focus on Tier-2/3 towns and on women [3].

AVGC-XR can turn India's young population and digital base into IP-led growth. IICT is necessary but not sufficient. The way forward is to:

  • launch the National AVGC-XR Mission;
  • name the spoke institutions through agreements with states;
  • place labs in schools that UDISE+ shows are ready;
  • write DPDP Act, 2023 data rules into contracts with device vendors.

With these steps, IICT can lead India's move from back-office creative work to a "Create in India" hub, which also advances SDG 8 (decent work).

Sources

  1. 1Immersive Technologies, PIB Delhi, 26 Oct 2026immersive-tech market size and CAGR; uses in education, healthcare and tourism
  2. 2Union Budget 2026-27: Major Boost for Orange Economy and Creative Education (PIB)₹250 crore labs in 15,000 schools and 500 colleges; need for 2 million professionals by 2030
  3. 3AVGC Task Force Report calls for National AVGC-XR Mission with budgetary outlay (PIB)National Mission, "Create in India", curricula, Tier-2/3 towns and women
  4. 4IICT to Lead Pan-India AVGC-XR Ecosystem; Hub-and-Spoke Model (PIB)PPP and Section 8 structure, FICCI/CII, industry partners, hub-and-spoke model
  5. 5IICT operational with Immersive Studios; 136 students in 18 courses (PIB)courses, students, Train-the-Trainer graduates
  6. 6Government Accelerates Orange Economy; Expands Content Creator Labs (PIB)IICT as nodal agency; labs at consultation stage
  7. 7Ministry of Education releases UDISE+ 2025-26 Report (PIB)internet in 67.4% and computers in 69.9% of schools
Practice
5 questions on this item
Check the answer for each question, or reveal all at once.
Practice MCQs →

More from this note

More on Polity