Is the Indian Gaming Industry the Next Global Giant? A $60 Bn Opportunity

Gaming industry in India is on the cusp of a revolution. From a market worth $3.7 billion in 2024, it is poised to skyrocket to $9.1 billion by 2029, creating millions of jobs and unlocking billions in investor value. But what’s fueling this meteoric rise? And can India truly become a global gaming powerhouse? 

A new report by the Interactive Entertainment and Innovation Council (IEIC) and WinZO reveals staggering projections for India’s online gaming sector. Launched at the Game Developers Conference (GDC) in San Francisco, the "India Gaming Market Report 2025" lays out a roadmap for the industry's growth, driven by mobile gaming, regional content, and investor confidence.

TICE brings key highlights from this report and decodes the growth of Indian Gaming Industry!

India’s Gaming Market: A Sleeping Giant Awakens

India is home to a whopping 591 million gamers—nearly 20% of the global gaming population. The industry has already received $3 billion in foreign investments, with 85% flowing into the Pay-to-Play segment. With 1,900 gaming companies employing 130,000 professionals, the country’s gaming ecosystem is thriving.

However, it’s the potential IPO boom that’s grabbing headlines. With regulatory clarity, Indian gaming startups could unlock $26 billion in investor value today, potentially reaching a staggering $63 billion by 2029. This could set the stage for India’s entry into the global gaming elite, competing with giants like the U.S. and China.

Investor Confidence & Market Valuation

The confidence of investors in India’s gaming sector is soaring. With a rapidly growing young population and an increase in digital transactions, gaming startups are emerging as some of the most attractive assets for venture capitalists and private equity players. The growing role of blockchain, NFTs, and Web3 gaming is also attracting global investors who see India as the next big hub for innovation in the gaming industry.

The Rise of Mobile-First Gaming

Unlike Western markets dominated by console and PC gaming, India’s gaming boom is fueled by mobile phones. With over 11.2 billion mobile game downloads in 2024 and the world’s most affordable mobile data, India’s ‘mobile-first’ gaming landscape is expanding rapidly.

By 2029, the number of online gamers is expected to surge to 952 million, making India one of the largest gaming markets globally.

The rise of 5G, affordable smartphones, and cloud gaming services is making high-quality gaming accessible to a larger audience, further driving growth in the sector. Additionally, the emergence of eSports and game streaming platforms is helping create a lucrative ecosystem that is drawing global attention.

Esports & Competitive Gaming: A New Era

The Indian esports industry is growing rapidly, with prize pools now rivaling traditional sports tournaments. Big brands and corporate sponsors are heavily investing in competitive gaming, making it a mainstream entertainment avenue. The inclusion of esports in global events like the Asian Games and Olympics is further cementing its legitimacy and encouraging Indian players to compete at an international level.

Vernacular Content: The Game Changer

One of the biggest trends shaping India’s gaming industry is the rise of regional-language games. Over 70% of Indian gamers prefer vernacular content, signaling a shift toward hyper-localized gaming experiences. Indie developers are also stepping up, creating ‘Made in India, for the World’ games that are gaining international recognition.

Gaming companies are leveraging AI-driven translation and voice recognition technologies to make gaming more immersive for non-English speaking audiences. As a result, rural and semi-urban regions are witnessing a significant rise in gaming adoption, breaking the long-standing myth that gaming is only for metro cities.

The Role of Localized Content in Driving Engagement

From mythology-based games to Bollywood-themed storylines, Indian gaming companies are innovating to keep their audiences engaged. Regional gaming tournaments and events are further boosting the adoption of vernacular content, bringing more players into the fold.

Government & Industry Collaboration Fueling Growth

The report was launched at the India Pavilion at GDC, a joint initiative by WinZO, the Ministry of Information & Broadcasting, the Game Developer’s Association of India (GDAI), and Nazara Technologies. The government’s focus on digital infrastructure and emerging tech is a major catalyst in this gaming boom.

"India stands at the cusp of a remarkable transformation in the global gaming and technology ecosystem," said Dr. Srikar Reddy, Consul General of India at San Francisco. "The Hon’ble Prime Minister’s support for digital innovation has positioned India as a global leader in tech and gaming."

The government is also working on policies to regulate and support the gaming industry. Recent discussions around gaming taxation, regulatory frameworks, and investment-friendly policies are expected to provide more stability to the sector. Additionally, collaborations between gaming startups, tech giants, and universities are paving the way for India to emerge as a game development hub.

Regulatory Challenges & Future Policies

While gaming is a booming industry, concerns around taxation, data security, and responsible gaming are still being debated. Policymakers are working to strike a balance between fostering growth and preventing excessive gaming habits, particularly among younger players. New gaming laws and self-regulatory bodies are expected to shape the industry's future landscape.

The Road Ahead: Can India Lead the Global Gaming Race?

While India’s gaming industry is growing at an explosive pace, challenges remain. The industry needs stronger regulatory frameworks, more investment in game development studios, and international collaboration. The lack of AAA game studios and high-end gaming infrastructure has been a bottleneck, but with increasing interest from global investors, this gap is expected to shrink in the coming years.

Moreover, India’s massive young population, growing disposable incomes, and increasing digital literacy are all factors that play in its favor. If the government and industry stakeholders continue to push for innovation and regulatory clarity, India has the potential to not only become a regional leader but also a global gaming superpower.

As the gaming sector gears up for an IPO wave and global expansion, one question remains—can India truly become the next big thing in the global gaming industry? The next decade will reveal the answer. Until then, stay tuned with TICE for the latest updates on the Indian Gaming Industry's growth.