India’s Games and Interactive Media Sector Projected to Hit $7.7 Billion by 2030

Bitkraft Ventures Report Forecasts Sixfold Growth in In-App Purchases Within Five Years

New Delhi, December 18, 2025 – According to the latest “India Gaming Industry Outlook Report” released by Bitkraft Ventures, India’s games and interactive media market is projected to reach $7.7 billion by 2030. Despite regulatory restrictions on real-money gaming, which previously fueled market growth, the report highlights that in-app purchase revenue is set to grow sixfold over the next five years, emerging as a new engine for the industry.

Market Transformation and Growth Drivers

You can access the full report here.

https://www.bitkraft.vc/insights/bitkraft-india-report/
The widely anticipated report reveals that India’s mobile gaming user base has surpassed 500 million, with the proportion of mid-core and hardcore gamers increasing from 18% in 2020 to 34% today. Malcolm Cuthbert, Partner at Bitkraft Ventures, analyzed, “While the tightening regulations on real-money gaming caused short-term market fluctuations, they have accelerated the quality upgrade of traditional game content. The performance of competitive games like Free Fire and BGMI on bestseller charts demonstrates that Indian players are ready to pay for premium content.”

The Rise of Local Developers
“After the ban was implemented, our team decisively shifted to developing role-playing and strategy games,” said Priya Shah, CEO of Mumbai-based game studio Kalanidhi. “By integrating Indian mythological narratives with open-world design, our new game Dream of Brahma achieved a 40% higher retention rate during testing than industry benchmarks. In-app purchases now account for 65% of our total revenue.”

This transition is not an isolated case. Statistics from Bangalore-based incubator GameDelta show that the number of mid-core and hardcore games launched by local Indian studios in 2024 increased by 210% year-on-year, with 73% of projects adopting creative approaches based on Indian cultural IP.

Capital Deployment and Infrastructure Upgrades
The report also sheds light on movements in the capital market: venture capital investments in India’s gaming sector reached $1.2 billion in 2024, an 18% increase compared to pre-regulatory ban levels. Justin Saini, Founder of Gurugram-based venture capital firm Lumikai, noted, “Capital is shifting from gambling models to deep content creation. The improvement of infrastructure, such as game engine training institutions and motion capture studios, provides the foundation for industrial upgrading.”

Challenges and Opportunities
However, the industry still faces challenges such as fragmented payment channels and brain drain. Rajeev Menon, Director of the Indian Game Developers Federation, appealed, “We need to establish cross-industry standardized payment interfaces and incorporate game development into the national digital skills training system.”

A recent policy recommendation document from the New Delhi-based Center for Policy Research also reflects this trend. The document proposes including the gaming industry in the “Make in India 2.0” initiative, offering a 30% tax reduction for projects that meet cultural export standards.

Future Outlook
With 5G penetration expected to exceed 60% by the end of 2025 and the ongoing development of India’s本土主机 “IndiStation,” many industry insiders predict that India could produce its first globally successful game IP by 2028. As Cuthbert stated, “When the sacred elephant god Ganesha meets cyberpunk in games, it is not just a blue ocean for business but the beginning of a digital renaissance.”