India’s gaming industry is said to expand from USD 3.7 billion in FY24 to USD 9.8 billion by FY29, achieving a compound annual growth rate (CAGR) of around 20 percent, as per a report from consulting firm 1Lattice.
This growth is attributed to several factors, including increased smartphone adoption, a young demographic, and government initiatives aimed at upgrading India’s presence in the global gaming sector.
As per the report, with more than 950 million internet users and 820 million smartphone users, India’s gaming base reached 560 million in FY23. Key drivers of this growth include enhanced connectivity, affordable high-quality smartphones, and the expansion of digital payments, which have all contributed to the industry’s reach.
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Mid-core And Hardcore Games Witnessing Growth
45 percent of India’s demographic is under 29 and is actively engaging with gaming, leading to a demand for more immersive experiences. The rise of gaming influencers, particularly during the COVID-19 pandemic, has also drawn new players into the gaming landscape.
The market is witnessing growth in mid-core and hardcore games, which require greater time and skill engagement. This segment is said to grow at a 47 percent CAGR and could become the dominant category by FY29.
Besides, the Real Money Gaming (RMG) segment is facing slower growth due to ethical and regulatory hurdles, although it remains a huge part of the ecosystem. In FY23, Indian users downloaded approximately 9.5 billion gaming apps, accounting for nearly 20 percent of global downloads.
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Indian Government Seeing The Potential of Gaming
The Indian Government has also recognized gaming’s potential initiatives such as the Animation, Visual Effects, Gaming and Comics (AVGC) Task Force, established in the 2022-23 budget. This task Force aims to foster talent development and promote international partnerships. In September this year, the Union Cabinet approved the establishment of the National Centre of Excellence (NCoE) in Mumbai, which is projected to create 500,000 jobs and enhance skills in immersive technologies.
Government-backed events like the World Audio Visual and Entertainment Summit (WAVES) and the National Game Jam aim to foster innovation and engagement in the sector. The recognition of Esports as a legitimate sport also adds credibility to its competitive potential, as evidenced by India’s Dota 2 team winning a bronze medal at the Commonwealth Esports Championships in 2022.
The private sector is investing in the gaming industry actively, with firms such as Nazara Technologies increasing stakes in key players like Paper Boat Apps and Absolute Sports, totaling over Rs 455.5 crore in 2024.