Real-money gaming (RMG) may have been banned, but India’s gaming industry has not lost the game. From in-app purchases to premium passes, cosmetic spending to subscriptions and advertising-led monetisation, the industry is rapidly expanding its revenue streams to sustain growth momentum since the ban that became effective from May 1 this year.
Long dependent on RMG as the primary driver of growth, the shift marks a significant milestone in the history of the industry as Indian gaming revenue breached the $1-billion barrier for the first time last year, as per the latest Asia & MENA Games Market Model Report released by Niko Partners, a market research firm covering games, e-sports, and streaming in Asia.
The report further forecasts that the total revenue will grow 14% by the end of this year to nearly $1.2 billion, and reach $1.77 billion by 2030 at a 5-year CAGR of 11.2%. As per the firm, India is the fastest growing market in gaming in Asia and MENA region.
As per Niko Partners, there were nearly 511 million players in India in 2025, and it expects the number to reach nearly 707 million by 2030, growing at a CAGR of 6.7% during the forecast period.
“India became the world’s largest market for game downloads a few years ago, which showed just how many people were playing games. What’s exciting now is that the market is evolving beyond downloads. People are spending more time playing, exploring a wider variety of games, and increasingly paying for experiences they enjoy,” said Sidharth Kedia, chief strategy and investments officer at NODWIN Gaming, a company focused on e-sports, gaming and youth entertainment.
Evolving Monetization
“For several years, discussions around India’s gaming industry remained synonymous with real-money gaming. However, the broader gaming ecosystem has been expanding rapidly underneath that narrative,” said Sagar Nair, head of incubation at LVL Zero, a gaming incubator backed by Nazara Technologies, MIXI Global Investments, and ChimeraVC.
Today, revenue growth is increasingly being supported by in-app purchases, battle passes, subscriptions, cosmetic spending, advertising-led monetisation, and live-service game ecosystems. According to the State of Interactive Media Report 2025 released by Lumikai, a leading interactive media and gaming VC fund, one in four players are now making in-game purchases. The report also highlights the difference in player spending, with mid-core games generating an average revenue higher per paying user as compared to casual games. “If compared to what it was 10 years ago, the spending numbers have increased 10 times now with clearer distinctions among titles,” explained Kedia of NODWIN Gaming.
Incidentally, e-sports has become one of the indirect beneficiaries of the broader growth in gaming participation. “What is particularly encouraging is that e-sports revenue today extends beyond prize pools and tournament operations. Sponsorships, media rights, publisher partnerships, creator-led content, live events, merchandise, and fan engagement initiatives are all contributing to the ecosystem,” said Nair of LVL Zero.
Competitive Ecosystems
What’s equally encouraging is that 60% of Indian gamers have engaged with e-sports, whether by playing competitive titles, watching tournaments or participating in competitions. “We’re already seeing that momentum translate into real progress. Indian teams are representing the country at global events like the Esports World Cup and athletes waving the flag at the Esports Nations Cup, publishers are expanding their competitive circuits, brands are investing more confidently, and creators are introducing millions of fans to e-sports every day. All of this points to an ecosystem that’s becoming larger, stronger and far more sustainable,” said Vishal Parekh, chief operating officer of CyberPowerPC India, a gaming computer manufacturer that specialises in custom-built gaming PCs and gaming accessories.
Going forward, revenue growth will primarily be driven by continued spending on mobile titles and an increase in the proportion of high and super-high spenders, largely from wealthier segments of India’s population, said the Niko Partners report. “Mobile titles continue to dominate spending, but we are also seeing increasing consumer willingness to pay for premium experiences, especially among higher-income segments,” added Nair of LVL Zero.
The biggest trends will be the rise of mobile in-app purchases, ad-supported casual games, battle passes, cosmetics, creator-led commerce, e-sports-linked monetisation and direct-to-fan IP models. “Globally, Niko Partners also points to GenAI in game development, niche genres, out-of-app monetisation, direct-to-fan monetisation of game IP and higher premium game spending as trends to watch. For India, the real story is monetisation quality improving, not just user numbers growing,” added Rohit Agarwal, founder and director of Alpha Zegus, a creative marketing agency specialising in gaming and lifestyle.