India’s gaming sector set to hit $60 bn by 2034, eyes 20% global market share

India’s gaming sector could reach a staggering $60 billion market size by 2034, fuelled by a 19.6% CAGR (FY24–29E), which will see India's share in the global gaming economy rise from 1.1% to 20% in a decade, but there's a need for regulatory clarity and supportive taxation policies to unlock its true potential, according to a latest report.

With a current valuation of around $3.7 billion (2024) and considering the projected growth, India’s gaming industry is expected to cross $9.1 billion by 2029, it finds.

India Gaming Report 2025, a study by gaming company WinZO and the Interactive Entertainment and Innovation Council (IEIC), states that the regulatory clarity supporting innovation and supportive taxation policies will be critical for the sector’s next leap and unlock. "With the right regulatory framework, Indian gaming companies could unlock unprecedented investor returns by accessing public markets, attracting FDI across sectors in India."

As per the report, based on the valuation benchmarks of listed company Nazara Tech, the gaming sector could achieve a m-cap/revenue multiple capable of unlocking $26 billion in investor value within three years through the IPOs of mature gaming companies. "Nazara commands one of the highest premiums among globally listed gaming companies, underscoring the market’s confidence in India's gaming potential."

Paavan Nanda, Co-founder, WinZO, at the launch alongside WAVES 2025 in Mumbai today, said the Indian gaming sector has a unique strength in the borderless digital economy. "With the right push, Indian gaming companies can dominate global IP creation in less than a decade, positioning India at the forefront of the $300 billion gaming economy in less than a decade. Built on peerless foundations, the sector is primed to unlock $25-30 billion in investor value in public markets within the next 2-3 years, cementing India’s dominance in the digital entertainment revolution."

India's gaming sector has shown a promise, with the sector home to 1,888 gaming companies that employ over 1,30,000 people. It boasts a user base of 600 million, which is set to rise to million by 2029.

"The India Gaming Report 2025 reflects India’s shift from being a consumer to becoming a global producer and exporter of gaming IP. With a vibrant domestic market and global ambitions, India can lead the next era of digital entertainment," said Nanda.

The report highlights that over 90% of the $3 billion FDI attracted by India's gaming sector to date has been directed towards the pay-to-play (real money gaming) segment. "Pay-to-play is an Indian innovation—a microtransaction-based monetisation model built on the success of India's Unified Payments Interface (UPI)—and has proven pivotal in making the gaming sector financially viable."

It claims that traditional monetisation models, such as in-app purchases and advertising, have seen limited scalability in the Indian market relative to the scale of gaming content consumption.

Gaming today accounts for 29.6% of India’s new media market, worth $12.5 billion, outsizing OTT, audio, animation, and social media. Globally, the $300 billion gaming industry has already surpassed the combined movie and music sectors.

The report draws attention to countries like Finland, Israel, and Turkey, which, despite their small populations, derive over 90% of gaming revenues through exports. "India, with its vast domestic market and rising global competitiveness, stands at a unique inflection point — offering the potential to build a dual engine of domestic consumption and global exports, embedding Indian gaming IP into the world's digital economy."

In his foreword to the report, Commerce and Industry Minister Piyush Goyal has stated that India is poised to lead the next frontier of digital innovation. "Gaming will be central to realising India's $1 trillion digital economy vision."