India’s gaming and interactive media sector is projected to triple from $2.4 billion in FY25 to $7.8 billion by FY30, even as it grapples with the loss of nearly half its potential market size due to the recent ban on real money gaming (RMG), according to a new report by BITKRAFT Ventures and Redseer Strategy Consultants.
The sector would have reached approximately $4 billion this year had RMG remained operational, meaning the ban has effectively eliminated 40-50% of the overall market, according to Anuj Tandon, partner and head of emerging markets at BITKRAFT Ventures. “We are missing almost 40 to 50% of the market share,” Tandon said, explaining the impact of the regulatory intervention.
Despite this setback, the report maintains strong growth projections, driven by three key factors: the shift from ad-based to in-app purchase monetization in gaming, a maturing user base that has grown up playing mobile games since 2016, and the rise of local interactive media solutions including micro-drama, audio streaming, and astro-devotional tech.
According to the report, in-app purchases (IAP) is expected to grow 6-fold between FY25 and FY30, eventually overtaking advertising revenue. The average revenue per paying user (ARPPU) is estimated to reach $27, a significant increase from $2-5 just five years ago.
“Indian users are value investors,” Tandon added. “In COVID, people started to spend Rs 100 rupees on games like Ludo King and found you can have 7-8 hours of entertainment versus spending Rs 100 rupees on a movie, which is 2 hours of entertainment.” This shift toward IAP is being driven by mid-core and core games becoming more mainstream on mobile devices.
Digital gaming is expected to grow at 18% CAGR to reach $4.3 billion by FY30, while esports is projected to grow at 26% CAGR to $132 million, backed by sponsorship-led revenues and government recognition of the sport.
The interactive media segment, which includes audio streaming, micro-drama, short-form video, social discovery, and astro-devotional tech, is expected to grow from $440 million in FY25 to $3.2 billion by FY30, the report added.
Micro-dramas alone is projected to reach $1.1 billion by FY30, mirroring China’s explosive growth trajectory in the format, the report predicts. Meanwhile, audio streaming platforms are expected to quadruple from $72 million to $300 million, driven by high user engagement of 95 minutes per day and UPI AutoPay subscription models.
Astro and devotional tech represents perhaps the most dramatic growth opportunity, projected to expand 8-fold from $165 million to $1.3 billion by FY30. “This sector is very ingrained in the cultural spirit of India,” Tandon said, noting that in tier-two and tier-three cities, consulting an astrologer is more socially accepted than seeing a therapist.
The regulatory clarity, despite its immediate negative impact, has actually strengthened investor confidence. BITKRAFT has made four investments in India over the past eight months and plans to accelerate its investment activity. “India is now at par with a lot of Asian countries in terms of regulatory clarity,” Tandon noted, pointing out that markets like Korea, China, and the West Asia have never allowed RMG. The firm expects 70-80% of its Indian investments to be at the early stage, with the remainder in growth-stage companies.
