India’s Booming Gaming Market Hits $7.63B with Mobile and Non-Metro Surge

India’s digital gaming industry is experiencing unprecedented growth, driven by mobile gaming, a widening user base beyond major cities, and rising investor confidence. With 590 million gamers and a market now valued at ₹66,000 crore ($7.63 billion), India stands out as one of the fastest-growing gaming economies globally, expanding at a CAGR of 14.5 percent—well above the global average of 8 percent.

Mobile games continue to dominate the Indian gaming ecosystem, helping the country secure the position of the second-largest market globally for game downloads. According to data from Lumikai, a gaming venture capital firm, India added 23 million new gamers in FY24. Notably, weekly playtime jumped by 30 percent, now averaging 13 hours per user, surpassing time spent on social media platforms.

Monetization is also evolving. The report notes that 56 percent of paying players make their first in-game purchase within a week of installing a game—highlighting a behavior pattern of quick yet thoughtful spending.

India’s gaming audience is no longer concentrated in urban centers. In FY24, 66 percent of gamers came from non-metro areas, and the share of women gamers climbed to 44 percent, up from 41 percent the previous year. Regional differences also emerged in digital behavior. Users in southern India engage more heavily with interactive platforms and show a higher willingness to pay for services, while the western region leads in readiness to spend on games.

Ashish Pherwani of EY India explained that India’s growth is underpinned by the annual addition of 15 million smartphones, a mobile-first population, and the world’s lowest data prices—factors that continue to drive digital adoption across sectors.

India’s gaming sector has attracted $2.8 billion in funding, further establishing it as a cornerstone of the country’s digital economy. The shift from passive content to participatory, creator-led platforms is creating new revenue streams.

Still, legal ambiguity persists. George John, an iGaming expert, noted,

“India’s iGaming industry is booming, but not all gaming models are treated equally under the law. If you’re in the industry, understanding this distinction is crucial for compliance and long-term success.”

Top casinos in India

100% up to

₮1500

Overall Rating

95

Visit Casino Read Review

100% up to

₹15000

Overall Rating

92

Visit Casino Read Review

200% up to

₹20000

Overall Rating

91

Visit Casino Read Review

Despite growth, the real-money segment has encountered hurdles. The EY report titled A Studio Called India estimates the online gaming segment earned ₹232 billion ($2.72 billion) in 2024, with 77 percent of revenue derived from transaction-based games. However, these titles are now subject to a 28 percent Goods and Services Tax (GST) on gross deposits, effective October 1, 2023, squeezing margins and causing investor hesitation.

Retrospective tax liabilities—estimated at over $13 billion—have introduced further uncertainty. Pherwani cautioned that until these matters are resolved, foreign investment in real-money platforms will remain on hold.

“But we expect investments into casual gaming and esports to be significant,” he added.

Looking ahead, EY projects the Indian online gaming market will hit ₹316 billion ($3.7 billion) by 2027, growing at a 10.8 percent CAGR. With its rapidly expanding user base, investor interest, and mobile-first momentum, India is well-positioned to remain a central player in the future of global gaming—though its long-term potential will depend on how regulatory and fiscal challenges are resolved.

Source:
, SiGMA, June 18, 2025