The Indian online gaming industry grew by 19.3 percent in 2024, with real-money gaming (RMG) dominating the sector, contributing 85.7 percent of revenue at $3.2 billion.
Despite challenges like higher GST liabilities, the Indian online gaming industry has shown resilience and adaptability. The Indian online gaming market is projected to reach $9.1 billion by 2029, according to a report from the Interactive Entertainment and Innovation Council (IEIC), in partnership with WinZO.
Nazara, India’s only publicly listed gaming company, holds the highest premium among global gaming firms. Applying similar valuation multiples, the current $3.7 billion online gaming market could unlock at least $26 billion in investor value through IPOs. By 2029, when the online gaming market is projected to reach $9.1 billion, this figure could rise to $63 billion. With the right regulations, India’s gaming sector has the potential to create 5 Decacorns and 10 Unicorns in the coming years.
India’s smartphone user base has surpassed 883 million, driven by demand from tier 2-5 cities. This has enabled 591 million Indians to access online gaming, supported by increased data consumption, 5G access, and a strong digital payment ecosystem.
Data usage per user has surged from 8.1 GB in 2018 to 31.9 GB in 2024 and is projected to reach 60.3 GB by 2029. These factors have fueled growth in consumer tech, online gaming, and India’s creator economy, which has expanded from 500,000 to over 4 million creators in five years, with gaming leading the surge.
India’s online gaming sector currently employs over 130,000 professionals and is expected to create 250,000 more jobs in the coming years, with potential to reach 2 million jobs by 2034. As gaming drives growth in AVGC-XR, companies are recruiting talent from premier institutes like IITs and NITs. However, skill gaps remain a challenge.
To address this, universities are offering specialized training in game programming, VFX, motion capture, and 3D modeling, while companies invest in on-the-job training. With increasing global recognition and “Made in India” IPs, Indian professionals are strengthening the country’s position in the global gaming industry.
Despite challenges like increased taxation, India’s gaming industry is set to grow at ~20 percent annually from 2024 to 2029, driven by content creation, the global appeal of ‘Made in India’ games, and exports of indigenous design and IP.
The share of paying gamers is expected to rise, supported by the agility of the Real Money Gaming (RMG) segment, which accounts for ~86 percent of the market. Growth will accelerate through deeper collaboration between RMG and non-RMG sectors. Talent remains a key advantage, while responsible gaming, GenAI, and stronger IP protection are shaping the online gaming industry’s future. Developers are also focusing on exports and alternative distribution channels to drive growth.
Baburajan Kizhakedath
