India’s gamer base grew in 2025 to reach between 515 million and 525 million players, said the latest report by Ficci EY, titled “Stories, scale and impact: Unlocking India’s media and entertainment economy.”
Launched on 24 March 2026, the report projects that video gaming revenue in India will reach Rs 92 billion by 2028, growing at a CAGR of 13 per cent. This growth will be driven by genre realignment, infrastructure maturity, rising per capita income, and evolving player preferences. The report further notes that India is poised to become a global gaming export hub, as economic slowdown pressures in developed markets lead to layoffs and stricter fiscal discipline, creating opportunities for Indian talent and studios.
According to the report, hyper-casual titles and mobile games remained dominant, with Battle Royale and Shooter genres forming the backbone of the in-app purchase (IAP) ecosystem and contributing over 40 per cent of total IAP revenue. Homegrown shooting titles also gained momentum, strengthening competitive play and community engagement.
The industry was disrupted in August 2025 when the Parliament passed the Promotion and Regulation of Online Gaming Bill, which received presidential assent. The law prohibits online games involving monetary entry fees and cash-out rewards, along with related payment processing, advertising, and promotions. This resulted in a ban on money gaming, which resulted in a 17 per cent decline in the segment and a 26 per cent drop in revenues. In contrast, video games benefitted from the shift, recording 14 per cent growth over 2024.
Money gaming companies responded by diversifying into video games, exports, finance, and content. As platforms recalibrated their models post-ban, advertising transitioned from a supplementary stream to a core revenue driver, expanding by 12 per cent in 2025.
Nazara Technologies CEO Nitish Mittersain commented, “AI, richer storytelling, and a new generation of developers are driving globally relevant gaming IP from India. The country is poised to become not only a major gaming market but also a hub for interactive content and digital entertainment. As AI transforms how games are built, distributed, and monetised, Indian studios have a unique chance to leapfrog and create global IP. The focus must now shift from consumption to creation, with scalable franchises that can compete worldwide.”
Here’s an overview of what took place in 2025:
India’s gamer base continued to grow in 2025
- Growth in 2025 was driven by casual and social formats, attracting new users across Tier-II and Tier-III cities, alongside the migration of gamers from the money gaming ecosystem following the regulatory ban.
- Over 100 million users engaged with games daily, driven by richer content, genre diversification, stronger community ecosystems, and the growing role of games as mainstream digital entertainment rather than a niche activity.
- Discovery was driven by short-session formats, creator-led ecosystems, and esports streaming, which increasingly shaped how new audiences were introduced to gaming.
Simulation games continued to be the most downloaded
- India remained one of the world’s largest markets by app download volumes, with total game downloads surpassing eight billion, reinforcing its position as a scale-driven gaming ecosystem.
- Simulation formats sustained their leadership in download volumes, followed by arcade, puzzle, and table-top games.
- Supply-side efficiencies such as faster development cycles, lower production costs, and strong potential for reskinning and live updates supported a continuous influx of new titles.
- Lifecycle relevance was extended through regular in-game events, culturally resonant themes, creator and celebrity associations, and seasonal content drops.
Monetisation
- Overall gaming revenues declined in 2025 due to regulatory intervention. GST on wallet deposits in 2024 and the prohibition of online money gaming from August 2025 significantly impacted the sector.
- Video games sustained steady double‑digit growth in 2025, continuing the momentum seen over the past few years.
- Money game revenues grew until August 2025, but the subsequent ban meant these formats were no longer permitted.
In-app purchases
- Shooter and mid‑core titles led growth, with deeper engagement driving higher in‑app purchases.
- Publishers shifted focus from access fees to in‑game value, optimising progression systems, cosmetic economies, and limited‑time events to monetise large free‑to‑play audiences at scale.
- Users concentrated on spending around battle and seasonal passes, character and weapon skins, and progression boosters, marking a shift from impulse buys to engagement‑led monetisation.
- Battle Royale and shooter titles continued to dominate India’s IAP ecosystem, accounting for over 40 per cent of total revenue.
PC and console gaming
- PC and console gaming stayed niche but highly engaging in 2025, with longer play sessions and higher spend per user than mobile, driven by immersive and competitive franchises.
- Financing schemes and zero‑cost EMI options improved access to gaming laptops and consoles for urban consumers, though hardware awareness and distribution remained limited beyond Tier‑I cities.
- Rising global demand for AI hardware, especially RAM and GPUs, pushed up component prices, making high‑performance rigs harder to afford.
Subscription gaming
- Subscription models increasingly complemented in‑app purchases and advertising by extending user engagement.
- 2025 saw India’s first exposure to cloud‑enabled subscription gaming with the launch of Xbox Cloud Gaming, shifting behaviour from ownership to access.
- Telco bundling became a key distribution lever, with Airtel expanding access via Airtel Thanks and Reliance Jio scaling JioGames Cloud, enabling premium play without downloads or consoles.
Revenue is expected to reach Rs 92 billion by 2028
- With money gaming restricted under current regulations, video games and esports will drive growth.
- Together, they are projected to rise from Rs 63 billion in 2025 to Rs 92 billion by 2028 at a 13 per cent CAGR, supported by genre shifts, stronger infrastructure, rising incomes and evolving player preferences, fueling sustainable IAP expansion.
- This signals a structural shift in India’s gaming revenue mix towards play‑led, content‑driven ecosystems, accelerating investment in mid‑core, hybrid casual and esports.
India will become a global gaming export hub
- More Indian studios are now engaged in global co‑development, live‑service support and original IP creation.
- Global developer stress, with revenues slowing and gamer growth at just two to six per cent in 2025, has led to over 45,000 layoffs worldwide. This is shifting development and management services to lower‑cost hubs such as Mexico, China, Turkey and India.
- Over the medium term, this positions online gaming as a meaningful contributor to India’s digital exports, strengthening its role in the global AVGC ecosystem and driving employment across high‑value creative and technical functions.
Console and premium gaming will grow
- In 2025, handheld consoles such as the ROG Xbox Ally and Ally X launched in India, bringing portable access to PC and Xbox libraries.
- The rollout of Xbox Cloud Gaming enabled high‑fidelity titles to stream across smartphones, PCs and smart TVs.
- While console gaming remains smaller in scale than mobile, it plays a disproportionate role in shaping expectations of production quality, storytelling and immersion, serving as a benchmark for India’s premium gaming evolution.
Creator and UGC-led gaming ecosystems will emerge
- User‑generated content platforms and creator‑driven ecosystems are set to gain momentum, enabling players to build, publish and monetise their own experiences, similar to global models like Roblox.
- Advances in AI‑assisted tools will lower development barriers, accelerating experimentation and opening the market to more independent creators and studios.
- Over time, gaming is expected to shift from a consumption‑led model to a participation‑led ecosystem, with creators driving discovery, community building and content velocity.
To read the EY Ficci 2025 report, click here.
