Mumbai, December 22, 2025: India’s gaming industry closes 2025 after a year of regulatory transformation, structural reset, and market realignment that reshaped business models, investment flows, and long‑term growth prospects. The sector now enters 2026 leaner, more institutional, and increasingly aligned with global gaming markets.
Key Developments in 2025:
Regulatory Reform
The Promotion and Regulation of Online Gaming Act (2025) prohibited real‑money formats such as fantasy sports and paid‑entry skill games. While this led to market exits, job losses, and startup closures, it also delivered long‑awaited clarity, prompting companies to pivot toward scalable, engagement‑led models including free‑to‑play, social gaming, and original IP.
Esports Recognition
Esports was formally recognised as an official sport in India, unlocking government support, brand partnerships, and institutional participation. Domestic leagues expanded, international tournaments grew, and Indian players gained visibility on global stages, cementing esports as a structured, commercially viable industry.
Industry Formalisation
New associations emerged to represent publishers and developers, while existing bodies deepened policy engagement on talent development, exports, and ecosystem growth. Gaming is now increasingly positioned as a creative and technology‑driven export sector within India’s digital economy.
Investment Recalibration
Investor focus shifted from real‑money gaming to sustainable growth areas. Global gaming funds backed studios, esports platforms, and original IP. Strategic acquisitions reflected a push toward scalability, content quality, and international reach. The industry is projected to grow from $2.4 billion in FY25 to $4.3 billion by FY30, at an 18% CAGR.
Market Growth & Platform Economics
Despite disruption, gaming adoption continued to rise, driven by smartphones, low data costs, and vernacular content. Platform economics became a key focus, with app store commissions emerging as major cost centres. Companies explored alternative distribution channels while prioritising discoverability and scale.
Industry Voices
- Nitish Mittersain, Jt. MD & CEO, Nazara Technologies: “India’s gaming sector is at an inflection point, with scalable models, original IP and global distribution coming together.”
- Kashyap Reddy, CEO & Co‑Founder, Hitwicket: “Esports recognition gives builders confidence. India’s biggest opportunity lies in creating globally competitive games.”
- Sridhar Muppidi, Chairperson, GDAI: “The next phase must focus on talent, incubation, and government‑backed acceleration. India can emerge as a major exporter of gaming content.”
- Anuj Tandon, Partner – India & UAE, BITKRAFT Ventures: “Regulatory clarity has been a turning point. We see stronger opportunities in game development, core technologies, and interactive media.”
- Anurag Choudhary, Founder & CEO, Felicity: “Longevity matters. We’re building evergreen games supported by infrastructure that compounds over time.”
- Vidhit Mehta, Founder & CEO, Shortgun Games: “AI is transforming design and live‑ops. The focus is shifting toward deeper engagement and globally competitive IP.”
Outlook for 2026
India’s gaming industry enters 2026 with foundations for sustainable, globally aligned growth. Esports, original IP, institutional engagement, and AI‑driven innovation will remain central to the sector’s evolution, positioning India as a competitive force in global gaming.
About the Stakeholders:
- Nazara Technologies: India’s only publicly listed gaming company, with businesses spanning Curve Games, Kiddopia, Animal Jam, Fusebox Games, World Cricket Championship, Sportskeeda, and offline gaming ventures. Website: www.nazara.com
- Felicity: An AI‑native game company creating and acquiring high‑performance titles, serving ~1M monthly active users.
- DSCI: Industry body on data protection and cybersecurity, set up by NASSCOM.
- Hitwicket: Cricket strategy game with 18M+ users across 106 countries, globally recognised and awarded as India’s #1 game.
- GDAI: National non‑profit association representing Indian game developers.
- BITKRAFT Ventures: Global investment platform with $1B+ AUM, backing 130+ portfolio companies across gaming, Web3, and AI.
