Levelling Up: State of India Interactive Media and Gaming Research FY24

The Indian interactive media and gaming sector has emerged as a significant economic force, reaching a market valuation of $12.5 billion in fiscal year 2024. Within this landscape, gaming stands out as the fastest-growing segment, contributing $3.8 billion to the total market. Driven by a 20% compound annual growth rate, the gaming industry is projected to reach $9.2 billion by fiscal year 2029. This growth is underpinned by a massive user base of 590 million gamers, which expanded by 23 million individuals over the past year, and a 30% increase in average weekly engagement time, now reaching 13 hours per user.

Monetization trends reveal a shift toward midcore gaming, which experienced a 53% year-on-year revenue increase. In-app purchases remain the primary growth driver, with the average revenue per paying user rising 15% to $22. While real-money gaming continues to be a major contributor, it faces margin compression due to recent regulatory and taxation adjustments. Despite these challenges, the sector benefits from high user sophistication, with significant overlap between real-money and midcore gaming audiences.

The findings are based on a comprehensive mixed-methods study conducted between May and October 2024, incorporating primary survey data from 2,269 smartphone users across 16 Indian cities alongside secondary market analysis and industry expert interviews. The research highlights a maturing ecosystem supported by government recognition of gaming as a "sunrise sector." Policy developments, including the establishment of Centers of Excellence for Animation, Visual Effects, Gaming, and Comics, and the formal classification of esports as a sport, signal a transition toward a more structured and mainstream industry environment.