The Indian economy is booming – and many countries are seeking to be part of its "economic miracle", in the words of Donald Lu, US Assistant Secretary of State.

So it's no surprise that India is the site of a great deal of investment in, and adoption of, XR.

XR (extended reality) is a catch-all term that covers assisted reality (aR), augmented reality (AR) and virtual reality (VR) – technologies that range from the overlay of digital information onto the real world all the way to immersive virtual environments.

Indian companies are increasingly hot on XR – and the recent launch of 5G services there has only added fuel to the virtual fire.

The industry's market share has expanded from $0.34 billion in 2017 to $1.83 billion in 2020, with a compound annual growth rate (CAGR) of 75%.

It's expected to keep spiralling outwards, advancing at a predicted CAGR of 38.29%. If this forecast is correct, the market will be worth $14.07 billion in 2027.

The new tech is especially popular in so-called Tier 2 and Tier 3 cities – urban centres with a population between 20,000 and 100,000, where a lot of young, tech-literate citizens live.

XR adoption in India has a lot in common with its applications in the rest of the world. It's being used to enhance the customer experience in retail – and to create 3D visualisations to educate and entertain in other sectors.

A report by Dentsu India, published in January 2023, argued that this digital transformation will "boost the Indian economy and reform industries such as agriculture, healthcare, education, logistics, transportation, and fintech".

The future could well be bright. But even at the time of writing, some exciting developments are happening in India. Let's take a closer look.

Fashion

Fashion eCommerce has boomed since the pandemic – but in the world of clothes and cosmetics, it comes with a downside.

How can you know that this jumpsuit, chore jacket or eyeliner will look good on you if you've only seen it on a web store?

Because of this, online retailers need robust returns policies to ensure that an ill-fitting pair of jeans doesn't mean they lose a repeat customer.

One way around this has been to embrace AR. Customers can try before they buy, virtually speaking.

This is increasingly popular in India, with more than 40% of shoppers having used AR when shopping online.

Online cosmetic retailer Nykaa, for instance, has its virtual "try-on" app called ModiFace. It uses cutting-edge face-tracking tech to create a digital model of your face. You can then try on as many types of lippy as you like before pressing "add to basket".

A similar innovation has also been rolled out by a specs company called Lenskart and another cosmetics firm called Sugar Cosmetics. The latter's "Wheel of Love" picks out the best shade of lipstick or foundation for the customer based on a photo of their face. 

The worlds of XR and AI overlap – so it's no wonder that fashion retailers are branching out into AI stylists.

Myntra – a popular Indian fashion platform – has unveiled "My Stylist". If you're putting together an outfit, this makes recommendations based on photos you upload of your "offline wardrobe", your past purchases, your browsing history and trending styles.

These developments have the potential to improve the customer experience, reducing buyer's remorse and excessive returns in the process.

Something similar is happening in tourism. Holiday timeshare company Club Mahindra, for instance, allows customers to check out its resorts with 360-degree videos.

As with fashion, the aim is to keep the customer satisfied – and coming back for more.

Healthcare

Healthcare is another industry where XR is making a difference. In India, Jaipur-based startup Cognihab is using VR to simulate high-risk surgical procedures. This can reduce the risk of clinical harm.

Meanwhile, the same startup is using XR to provide care for patients with autism, chronic pain and anxiety.

Both doctors and patients, then, are benefiting from XR – and so are paramedics.

In Thiruvananthapuram, south India, Aster Medcity healthcare centre unveiled the nation's first aR ambulance in April 2023. This 5G-enabled ambulance has been described as "a virtual emergency room on wheels".

Paramedics can use aR smart glasses to communicate with remote experts and receive potentially life-saving guidance. WiFi-connected biomedical devices send live data to specialists in the hospital.

Overall, this smart ambulance speeds up the process of diagnosis and screening – gaining time that could literally be the difference between life and death.

Whatever the future holds for XR in healthcare, you can be sure that India will be a player.

Education

In India's education sector, too, XR is gaining ground.

As with workplace training, XR in education seeks to solve the problem of how to engage learners – and how to make them successfully retain information.

Immersive learning has the potential to be immersive, memorable and fun in a way that even today's smart boards aren't.

In India, the School Education Department has collaborated with an AR/VR startup called Meynikara. They've rolled out immersive learning courses across regional schools in India.

These courses provide real-time 3D environments that students can explore, guided by their teachers. The hope is that this will keep learners fully engaged and improve knowledge retention.

International collaboration

XR is a global industry where cross-border collaboration is the norm. One example of this is Meta's announcement that it will support 40 XR startups in India.

These startups are operating in a wide range of sectors – education, healthcare, gaming, entertainment, agri-tech, tourism and climate.

The goal is to help develop these startups' products and bring them to market.

What's next?

XR adoption in India is booming across a range of sectors. If forecasts are correct, it could be a key player by the end of the decade. We'll let you know how it all unfolds.

SimplyVideo is an XR-enabled video platform designed for remote collaboration. Explore our blog for more industry analysis or jump straight in with a free 30-day trial.