India's Online Gaming Boom: A USD 9.1 Billion Industry in the Making Web3 gaming has potential, but experts believe it's not fully ready yet. "Web3's biggest challenge is balancing in-game economies. If real-world assets are involved, mistakes in inflation and deflation can be catastrophic," Saikat Mondal, SVP-Strategy & M&A at Nazara

The Indian gaming industry is on fire, and the numbers prove it. In 2024, the industry was valued at USD 3.7 billion, but it is set to more than double to USD 9.1 billion by 2029, according to the India Gaming Report 2025 by WinZO and IEIC. The sector, already home to 591 million gamers, is becoming a hotbed for investment, innovation, and IPOs.

With regulatory clarity, the report estimates that USD 26 billion in investor value is waiting to be unlocked, potentially surging to USD 63 billion by 2029. The future looks bright, and industry leaders are gearing up for a game-changing decade.

"India stands at the cusp of a remarkable transformation in the global gaming and technology ecosystem. As one of the fastest-growing digital economies, our nation's gaming sector is not just an entertainment powerhouse but a driver of innovation, job creation, and investment," said Dr. Srikar Reddy, Consul General of India.

Echoing this enthusiasm, Paavan Nanda, Co-founder, WinZO emphasised, "India's online gaming industry is on an unprecedented growth path, with a projected market size of USD 9.1 billion by 2029 and the potential to unlock up to USD 63 billion in investor value."

M&A, Business Models, and What's Next?

With the industry's rapid growth, mergers and acquisitions (M&A) activity is heating up. Nazara Technologies, India's only publicly listed gaming company, has been on an acquisition spree, expanding into e-sports, sports media, and even Comic Con India.

Saikat Mondal, SVP-Strategy & M&A at Nazara, explained, "We like to partner with studios or acquire studios that have a solid core, which can be scaled multiple times to create value for both partners and shareholders. The traditional way of doing business isn't dying; we're just overlaying it with emerging tech like VR, UGC, and game commerce."

But where's the money in gaming? The free-to-play model still dominates, but casual and hyper-casual games are seeing explosive growth. Yashash Agarwal, CEO of Gamezop, pointed out that in-game purchases aren't yet a major driver. "In India, gamers don't find skins or virtual items worth their money. They need a tangible return, which is why real-money gaming is a key revenue driver," he explained.

Gamezop, which has 8,000 distribution partnerships, has cracked the B2B model, embedding games in non-gaming apps to increase engagement.

Indian IPs: The Next Big Opportunity?

Despite the industry's success, Indian IPs haven't yet taken off. But that's about to change. Daniel Hall, VP of Engineering at LightFury Games, believes India is on a Tencent-like trajectory. "Ten to fifteen years ago, China had no major global gaming presence. Now, Tencent and others dominate. India is just earlier in that journey, and investment in Indian IPs will follow where revenue leads."

Adding to this, Mondal said, "We already have Indian IPs, though their classification is murky. But as more capital gets unlocked, we'll see a surge in homegrown gaming content."

Web3 & Edutainment: The Future of Gaming?

Web3 gaming has potential, but experts believe it's not fully ready yet. "Web3's biggest challenge is balancing in-game economies. If real-world assets are involved, mistakes in inflation and deflation can be catastrophic," Mondal noted.

Meanwhile, gaming and education are becoming increasingly interconnected. "Gaming and education have a strong correlation. Platforms like Duolingo prove that gamification enhances learning," he added.

Games of the Future

With 952 million gamers expected by 2029, India's gaming industry is moving at warp speed. As Paavan Nanda put it: "As we push boundaries in technology, IP creation, and engagement, India is well on its way to becoming a global gaming powerhouse."