A youth group in Indiana has launched a gay license plate, complete with rainbow logo.

Featuring multi-colored outstretched hands, the speciality plate was created by the Indiana Youth Group (IYG) and will help raise money for gay youngsters in the US state.

Mary Byrne, executive director of the group, says the colorful logo will attract attention and drum up support for LGBT youth issues.

Speaking to the Indianapolis Star, she said: 'It's an incredible way for people to support IYG, for people, especially youth, to know about IYG and for people to show their pride in who they are.'

The plate was orginally turned down by the Indiana Bureau of Motor Vehicles, who argued it did not have a wide enough appeal and worried  revenue from sales of the plate may be used to pay IYG employees.

However, after a legal battle, the colorful plate is now available to buy for $40 - of which $25 will go towards the group.

Indiana is second only to Maryland in approving a specialty plate on behalf of LGBT youths.