India's Gaming Industry Hits $3.8 Billion, Poised to Reach $9.2 Billion by FY29: Report

India’s gaming industry, the sector which rose to $3.8 billion, is anticipated to grow to $9.2 billion by FY29, according to a report by Lumikai, an Indian interactive media and gaming VC fund.       

The report, created in collaboration with Google and Deloitte, reveals that India is the world’s second-largest mobile gaming market, with 15.2 billion downloads three times the total number of downloads from Brazil and the US combined.

The company’s annual market intelligence report, “State of India Interactive Media and Gaming Report,” stated constitutes 30 per cent of the broader new media market and is its fastest-growing segment. 

India's new media market reached $12.5 billion in FY24, growing at a CAGR of 16%, with gaming and Video/OTT sectors accounting for more than 60% of the market. The report also highlighted India as a major player in global Animation/VFX services, with the industry valued at $1.6 billion in FY24.

Commenting on the partnership, Aditya Swamy, Regional Director, Google Play, said, “We are delighted to continue our partnership with Lumikai on this industry-defining report. India has established itself as a global gaming powerhouse with 590 million gamers and is projected to deliver strong growth over the next five years.

We are firmly committed to being a key growth enabler to the ecosystem and excited about the opportunity ahead of us.”

Of the nation's 591 million gamers, 44% are women. In FY24, 23 million new users joined the gaming community. Additionally, 66% of gamers come from non-metro cities, with 43% being first-time earners in the 18-30 age bracket.

In FY24, 148 million users made in-game purchases, with 8 million new paying players joining the ranks. In-app spending, driven by mid-core games, saw a 41% year-on-year (YoY) increase, making it the fastest-growing segment of the $3.8 billion revenue for the year. 25% of gamers reported spending money on games, consistent with FY23, with 83% favoring UPI or digital wallets for payments. Additionally, 64% of paying users who engage with RMG formats also make purchases in mid-core games, indicating a crossover in gamer profiles and evolving preferences. The average revenue per paying user (ARPPU) rose by 15%, reaching $22.

The average weekly time spent on gaming increased by 30 per cent to 13 hours, doubling the time spent on social media platforms. 

At the exclusive Lumikai Insignia summit, which gathered influential figures such as SS Rajamouli, Abdullah Alorainy, Investment Manager at Saudi's PIF, Cevat Yerli, founder of Crysis and Far Cry, and Raja Koduri, a veteran in the gaming industry who previously led Graphics Computing and Engineering at Intel, Apple, and AMD, PIF unveiled the launch of Savvy Gaming Group. This new gaming and esports company aims to drive ongoing progress in the global gaming sector, supported by a $38 billion commitment.

Salone Sehgal, Founding General Partner at Lumikai, said, “Both founders and international VCs stood as beneficiaries of the summit, connecting India’s entrepreneurial talent with global decision-makers. Additionally, as a platform for our report launch, Insignia presented the compelling growth of India’s interactive media and gaming industry. From a 30 per cent increase in average weekly gaming time to a user base of 148 million paying users contributing to an ARPPU of $22, the findings garnered global recognition and conveyed market readiness for the next phase of growth”.