May 30, 2025: India’s online gaming sector is on the cusp of explosive growth, with revenue projections soaring to $19 billion by 2029. This remarkable forecast highlights the nation’s potential to emerge as one of the largest digital gaming markets globally, driven by a tech-savvy youth population, deeper smartphone penetration, and rising digital infrastructure.
According to a recent industry report released on May 30, the online gaming segment alone is expected to reach $9.1 billion by 2029—more than double its current value. Real Money Gaming (RMG) remains the primary contributor to this surge, accounting for 85.7% of the sector’s revenues in 2024, with an estimated valuation of $3.2 billion. Games such as rummy, poker, and fantasy sports continue to attract a massive user base across urban and rural India.
Real Money Gaming Fuels Growth
The report emphasized that the RMG segment has grown by 18% in 2024 alone, underscoring its rapid expansion and increasing mainstream appeal. Industry leaders attribute this trend to the accessibility of affordable smartphones, 5G internet rollout, and rising consumer interest in immersive and reward-based digital experiences.
Fantasy sports platforms like Dream11, MPL, and Games24x7 have played a significant role in revolutionizing how users engage with games—blurring the lines between entertainment and financial incentives.
India’s Expanding Gaming Demographic
India currently boasts 591 million gamers—about 20% of the global gaming population—making it the second-largest gaming community in the world. In 2024 alone, India recorded 11.2 billion mobile game app downloads, surpassing major gaming markets like the US and China. This explosion in user base is directly tied to government-led initiatives like Digital India, improved rural connectivity, and increased smartphone affordability.
Investment and Employment on the Rise
Foreign Direct Investment (FDI) in India’s online gaming industry has crossed $3 billion, with nearly 85% funneled into the Pay-to-Play segment. This capital influx has not only fueled innovation in game development but also driven job creation. The sector currently employs around 100,000 people and is projected to create more than 250,000 direct and indirect jobs by 2025.
“This is more than just a gaming boom. It’s an economic opportunity that cuts across sectors—from tech development to marketing, cloud services to cyber security,” said a senior official at a leading gaming studio in Bengaluru.
Regulatory Headwinds and Industry Concerns
Despite the rosy outlook, the sector faces significant headwinds—chief among them is taxation. The imposition of a 28% Goods and Services Tax (GST) on online gaming has triggered concerns within the developer and investor community. Many stakeholders argue that high taxation on skill-based games could discourage innovation and make Indian platforms less competitive globally.
“We support regulation, but it has to distinguish between games of skill and games of chance. A one-size-fits-all tax regime could harm a sunrise sector,” said a spokesperson from the All India Gaming Federation (AIGF).
Future-Ready Technologies: AR, VR & Cloud Gaming
Looking forward, India’s gaming industry is also embracing emerging technologies like Augmented Reality (AR), Virtual Reality (VR), and cloud gaming. These innovations are expected to reshape the gaming landscape, offering more immersive and personalized experiences.
Many homegrown developers are now exploring partnerships with international firms to bring these advanced gaming formats to Indian audiences, especially among Gen Z consumers who seek high-quality, console-level performance on mobile devices.
Path to $63 Billion in Value Creation
Perhaps the most staggering projection is that India’s gaming sector could unlock up to $63 billion in investor value by 2029. This estimate includes direct revenues, indirect monetization (such as advertising and e-sports sponsorships), and broader ecosystem development.
Industry analysts believe that if current growth trends continue and a stable policy environment is ensured, India could not only reach its $19 billion revenue goal but also become a global innovation hub for gaming.
Conclusion
As India’s digital economy continues to mature, the online gaming sector stands out as a bright spot with massive untapped potential. With strategic investments, technological innovation, and balanced regulation, the country is well-positioned to dominate the global gaming arena over the next five years.
