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India’s gaming industry has undergone a remarkable transformation over the past decade. Once considered a niche pastime, gaming has now entered the mainstream, captivating millions across the nation. The convergence of technological advancements, economic growth, and a culturally diverse audience has set the stage for a thriving gaming ecosystem. As of 2023, India boasts approximately 450 million gamers, positioning it among the world’s largest gaming markets.
This surge in gaming activity has not only attracted global gaming companies but has also spurred domestic startups to innovate and cater to the unique preferences of Indian gamers. Consequently, there has been a significant influx of investments, with venture capitalists and gaming funds recognizing the immense potential within the Indian market. Understanding the dynamics of the Indian gaming industry, the role of online gaming, and the avenues for investment is crucial for stakeholders aiming to capitalize on this burgeoning sector.
The Indian gaming industry encompasses various segments, including mobile gaming, PC and console gaming, esports, and real-money gaming. Among these, mobile gaming has emerged as the dominant force, primarily due to the widespread availability of affordable smartphones and cost-effective data plans. Reports indicate that India is the fastest-growing mobile gaming market, with the annual revenue of the overall Indian gaming industry expected to almost double to USD 6 billion by 2028 from USD 3.1 billion in 2023.
The demographic profile of Indian gamers is predominantly young, with approximately 65% under the age of 35. This youthful demographic is more inclined towards digital entertainment, contributing to the industry’s rapid expansion. Moreover, the increasing acceptance of gaming as a legitimate form of entertainment and a potential career path has further fueled its popularity.
Online gaming in India has witnessed exponential growth, evolving into a significant component of the country’s digital economy. As of 2023, the online gaming market in India is valued at ₹23,000 crore (approximately USD 2.8 billion) and is projected to reach ₹70,000 crore (approximately USD 8.6 billion) by 2027, reflecting a compound annual growth rate (CAGR) of 20%.
The rapid growth of the Indian gaming industry has caught the attention of both domestic and international investors, leading to significant capital inflow into gaming startups. As of January 2025, there are 50 venture capital (VC) funds actively investing in Indian gaming startups, with investments spanning mobile gaming, esports platforms, real-money gaming, and gaming technology development.
The Indian government has recognized the potential of the gaming sector and is actively fostering its growth through supportive policies and initiatives:
These investments are not only providing the necessary capital for startups to innovate but are also fostering an ecosystem that supports growth and sustainability. With the combined efforts of the private sector and government initiatives, the Indian gaming industry is poised to become a global powerhouse, offering substantial returns for investors and opportunities for entrepreneurs.
Despite the optimistic growth trajectory, the Indian gaming industry faces challenges, particularly in the regulatory domain. The classification of games as ‘games of skill’ versus ‘games of chance’ has significant tax implications. In October 2023, the finance ministry categorized certain online games alongside lotteries and gambling, subjecting them to a 28% tax rate. This decision has prompted industry stakeholders to advocate for a more nuanced regulatory framework that distinguishes between different types of gaming activities.
Moreover, the lack of a unified national policy leads to varying regulations across states, creating complexities for operators. Addressing these regulatory challenges is crucial for sustaining growth and attracting further investments.
The future of the Indian gaming industry appears promising, with projections indicating continued growth and diversification. The integration of advanced technologies such as 5G, augmented reality (AR), and virtual reality (VR) is expected to enhance gaming experiences, attracting a broader audience. Additionally, the expansion into rural markets and the development of games catering to diverse linguistic and cultural preferences will further drive growth.
Esports, or competitive gaming, has seen a meteoric rise in India over the past few years. With increasing viewership and participation, esports has transformed into a professional industry, supported by sponsorships, advertisements, and prize pools.
Esports is also gaining recognition as a career path, with universities offering specialized programs in gaming technology, event management, and digital marketing related to esports. This growing ecosystem creates a vibrant space for investment and growth.
The rapid adoption of emerging technologies like 5G, augmented reality (AR), and virtual reality (VR) is redefining the gaming experience in India. These technologies enhance gameplay, provide immersive experiences, and attract tech-savvy audiences.
Investors are likely to continue showing interest, provided there is clarity in regulatory policies and a stable business environment. Collaborations between stakeholders, including developers, investors, and policymakers, will be pivotal in shaping the industry’s trajectory.
India’s gaming industry is on a remarkable growth trajectory, driven by advancements in technology, a young demographic, and increasing investments. From mobile gaming to esports and real-money gaming, the sector offers diverse opportunities for entrepreneurs and investors alike. However, navigating the regulatory landscape and catering to a culturally diverse audience are crucial for sustaining this growth.
For investors, the Indian gaming industry represents a high-potential market that combines innovation with scalability. Whether through gaming funds, direct investments, or collaborations with startups, the opportunities to capitalize on this booming sector are immense. As the industry evolves, stakeholders must work collaboratively to overcome challenges and unlock the full potential of India’s vibrant gaming ecosystem.
As of 2023, the Indian gaming industry is valued at USD 3.1 billion and is projected to reach USD 6 billion by 2028.
Affordable smartphones, cheap internet data, increasing esports popularity, and localized gaming content are major growth drivers.
You can invest through venture capital funds, angel networks, or directly in startups specializing in gaming, esports, or gaming technology.
Eximius Capital Ventures Private Limited is the investment manager of the funds licensed by SEBI under AIF categories CAT I – Eximius Trust I (IN/AIF1/20-21/0855) and CAT II – Eximius Fund (IN/AIF2/24-25/1566).
Eximius Capital Ventures Private Limited is the investment manager of the funds licensed by SEBI under AIF categories CAT I – Eximius Trust I (IN/AIF1/20-21/0855) and CAT II – Eximius Fund (IN/AIF2/24-25/1566).
