Home to over 600 million gamers, mostly mobile-first, India is experiencing a massive boom in the mobile gaming arena. This growth is notably led by those living in Tier 2/3 cities due to factors such as affordable smartphones and internet access, localised content, and increased disposable income. Consequently, the country has become a leader with mobile game downloads reaching 15.2 billion in FY24. Once an ideal avenue of entertainment, gaming, over the years, has evolved into a medium of building culture, community, and even fostering economic growth. In a way, this evolution presents a new frontier for the Indian gaming sector. From being a massive consumption market, the country can now harness the strategic opportunity of transforming itself into a global leader through monetisation, esports, and the creation of Intellectual Property (IP).
Monetisation: Keeping up with the gamers
That gamers in India are more than willing to pay for a culturally relevant and aspirational gaming experience is an exciting trend for game publishers. It has been observed that microtransactions, such as offering skins, battle passes, and event-linked rewards, are at an all-time high. Games developed around festival themes or those that follow localised formats seem to be performing well.
However, a key obstacle that limits the industry’s prospects of near-term monetisation of games is the relatively low Average Revenue Per User (ARPU), compared to other countries. To solve this issue, publishers will have to look at tailor-made monetisation models that meet the preferences of Indian consumers. Be it through microtransactions, festival-driven content, or bundled services, it can certainly bring in significant growth.
While monetisation through in-game purchases is a great step for improving revenue, the real success of a gaming business is hinged on balancing it with trust of the gamers. More recently, gamers in India tend to engage more and be loyal with games that offer a full-fledged reward system. From paying for features like additional lives or boosters, that help players to navigate the game effectively, they now lean towards festival discounts and mobile recharge tie-ins for instant gratification. However, be it branded items or limited-time rewards, everything needs to be seamlessly weaved into the play, rather than making it intrusive. This is probably the best way to gain a gamer’s trust.
Esports and IP creation can give India a competitive edge
In an encouraging step, the Government of India has officially declared esports to be a part of the multi-sports event category. This also sets a strong foundation for India’s esports market, which though at a nascent stage, is projected to scale as a high growth market in the global arena which is expected to reach US$ 16.7 billion by 2033.
That esports are highly popular among gamers is already being witnessed at the annual flagship tournaments that have been hosted across the country in recent times. Besides giving a boost to the gaming sector these are also responsible for shaping talent pipelines and creating employment. Though currently, an uneven talent pipeline across functions including design, publishing, and technology, makes it difficult to build an experienced employee ecosystem, experts estimate that the sector can create over two million high-skilled jobs.
Furthermore, esports are evolving into a cultural spectacle blending gaming, lifestyle, and celebrity culture and driving youth identity. Elements such as large prize pools and structured formats attract top players and inspire aspirational play. Such a community-first ecosystem helps to strengthen loyalty and cements gaming as part of India’s entertainment mainstream. While a structured development of esports ecosystems and a strong talent pool, presents a huge opportunity for India to transform into a global gaming hub, creation of IP will help safeguard a game’s core elements. This includes localised content that has cultural storytelling at its core.
Defining global gaming: Going beyond the play
Reports assessing India’s place in the global gaming market indicate that the country’s gaming market can grow at a CAGR of ~19% to reach US$ 9.2 billion in the next four years from US$ 3.8 billion in 2024. The country’s gaming domain differs from the US, Korea, and China, in terms that microtransactions dominate, subscriptions are rare, and mobile-first scale drives growth.
Global benchmarks are useful to navigate the spectrum toward growth, but India requires nation-specific strategies. This will involve localised content, sachet pricing, and UPI-friendly transactions. Games with brands and celebrity collaboration, helps scale the reach and even make them a mainstream medium. For instance, when a renowned Bollywood actor participates in an exclusive in-game tie-up, it increases the aspirational level of the game, roping in more players.
India’s innovations in scale-driven, culturally tuned monetisation gaming could influence other emerging markets. It is already poised to move from being a high consumption market to a global publishing leader. Today, gaming makes up for 29.6% of India’s New Media market (US$ 12.5 B), surpassing the share of other channels of mass entertainment such as OTT, audio, animation, and social media. Against this backdrop, game publishers in the country are showcasing an increased confidence in its potential. They are keen to step up and unlock the next leap in the sector. However, only those who offer gaming content that resonates culturally and follows strategic in-game monetisation will reach the success line.
Based on the current scenario the next decade offers India a chance not just to dominate game downloads, but to shape global gaming trends, careers, and IP creation.
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