India’s gaming industry is on the cusp of a transformative leap, transitioning from a consumption-heavy market to a powerhouse of global game development and digital innovation. The India Gaming Report 2025, jointly released by WinZO and the Interactive Entertainment and Innovation Council (IEIC), outlines a bold new vision: a $60 billion market valuation by 2034, a 19.6% CAGR through 2029, and India capturing 20% of the global gaming economy.
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From Player to Powerhouse: India’s Gaming Revolution
Currently valued at $3.7 billion in 2024, the sector is projected to grow to $9.1 billion by 2029 and reach $60 billion by 2034. This unprecedented growth is backed by a vibrant user base of ~600 million, expected to surge to ~952 million by the end of the decade. With 1,888 gaming companies and a workforce of over 130,000, the stage is set for a digital renaissance.
The Dual Engine: Domestic Strength & Export Ambition
India's domestic market is becoming a springboard for global game IP exports, mirroring the success seen in Finland, Israel, and Turkey—countries that derive over 90% of gaming revenues through exports despite their smaller populations. As Paavan Nanda, Co-founder of WinZO, emphasized during the launch at WAVES 2025, India is now poised to lead the next frontier of digital entertainment.
“The Indian gaming sector exports bytes, not boxes—a unique strength in the borderless digital economy,” said Nanda.
Job Creation, IP Development, and Investor Windfalls
With the right mix of policy support, India’s gaming ecosystem could create over 2 million high-skilled jobs, significantly boost Make in India tech IPs, and unlock $26 billion in investor value via IPOs within just three years.
Valuation benchmarks, especially from Nazara Technologies—India’s first and only publicly listed gaming firm—demonstrate the massive premium and investor confidence the market commands. Nazara’s market cap/revenue multiple is among the highest globally, setting the tone for upcoming public listings in the sector.
Pay-to-Play: India’s Unique Monetization Model
One of the sector’s standout features is its unique Pay-to-Play innovation. Built on the success of India’s Unified Payments Interface (UPI), this microtransaction-based model has emerged as the cornerstone of monetization, driving scalability, global investment, and user retention—outpacing traditional models like in-app purchases and advertising.
Over 90% of the $3 billion in FDI that the Indian gaming sector has attracted to date has gone into the Pay-to-Play segment, making it a pivotal driver of financial sustainability and international appeal.
A New Media Giant: Gaming Outpaces OTT, Audio & Social
Gaming now commands a 29.6% share of India’s $12.5 billion new media market, outranking OTT platforms, audio streaming, animation, and social media. Globally, the gaming industry has surpassed the combined revenues of the movie and music sectors—valued at $300 billion—further underlining its rising cultural and economic significance.
Policy and Regulatory Support: The Need of the Hour
Despite the booming potential, the report stresses the urgent need for regulatory clarity and supportive taxation policies. These frameworks are essential to sustain innovation, attract more FDI, and help Indian companies access public markets to drive the next phase of sectoral growth.
In his foreword to the report, Commerce & Industry Minister Shri Piyush Goyal highlighted gaming as a cornerstone of India’s $1 trillion digital economy vision:
“Under the dynamic leadership of Hon’ble Prime Minister Shri Narendra Modi ji, India is poised to lead the next frontier of digital innovation. Gaming will be central to realizing this vision.”
FAQs
1. What is the projected value of India’s gaming industry by 2034? The sector is projected to reach $60 billion by 2034, with a CAGR of 19.6% from FY24 to FY29.
2. How many users will India’s gaming sector have by 2029? The user base is expected to grow from 600 million to 952 million by 2029.
3. What is the significance of the Pay-to-Play model? It’s a homegrown microtransaction model based on UPI, pivotal in monetizing Indian games and attracting global FDI.
4. What share of India’s new media market does gaming occupy? Gaming accounts for 29.6% of the $12.5 billion new media market, surpassing OTT and audio platforms.
5. How can Indian gaming companies unlock $26 billion in value? By leveraging public market IPOs and policy support, based on valuation trends seen with Nazara Technologies.
6. What kind of jobs will the gaming sector generate? Over 2 million high-skilled digital and tech jobs, especially in game design, animation, development, and IP creation.
India’s gaming industry is standing tall at a global inflection point—backed by technological innovation, regulatory opportunity, and unmatched market scale. With the right ecosystem, it could not only redefine digital entertainment but also put Made-in-India gaming IP at the heart of the global stage.