Mumbai, Jan 23: The ban on Real-Money Gaming (RMG) in India in 2025 marked a watershed moment for the digital gaming sector. While companies continue to navigate the aftermath of this regulatory reset, it has also created a clear inflection point for the industry’s long-term direction. With the Government of India signalling a strategic shift towards video gaming and the broader game-developer ecosystem, there is renewed optimism that the upcoming Union Budget will meaningfully recognise this transition.
Video gaming in India is now outpacing several other digital entertainment segments and remains among the fastest-growing sectors in Asia and globally. A policy framework and budgetary support aligned with this growth trajectory would give India its first real opportunity to build a sustainable video-game creation economy driven by developers, studios, and IP creation globally.
BITKRAFT’s India Opportunity Report 2025 revealed that the gaming and the interactive media sector, already a key engine in India’s digital media and entertainment space, is projected to triple in size reaching ~$8 billion by FY 2030. This growth positions India to evolve from a 500+ million strong gamer market into a globally competitive game-creation economy, anchored in original IP and developer talent.
Sridhar Muppidi, Chairperson, GDAI (Game Developer Association of India), states, “As India accelerates toward its goal of a $1 Trillion digital economy, the gaming sector stands at a pivotal inflection point. Our recommendations for Budget 2026 focus on a ‘surgically targeted’ approach: rather than asking for new greenfield projects, we are advocating for dedicated ‘Gaming Carve-outs’ within existing flagship schemes like Startup India (SISFS) and Skill India (PMKVY). By earmarking funds for prototype development and specialized ‘Creative Tech’ apprenticeships, the government can provide the high-octane fuel needed for Indian studios to build world-class Intellectual Property. Our vision is to transform India from being the world’s largest consumer of games into its most prolific creator, ensuring that ‘Made in India’ games are played on every console and smartphone globally.”
Nitish Mittersain, Jt. MD & CEO, Nazara Technologies, adds,
“We are optimistic about the government’s continued focus on strengthening India’s digital and creative economy. For the gaming and interactive entertainment sector, a stable and predictable policy framework will be key to driving long-term growth and investor confidence. Support for domestic game development, encouragement of original IP creation, investments in skilling and digital infrastructure, and focused initiatives around esports and animation can significantly accelerate the industry’s momentum. India also has a unique opportunity to leverage its rich cultural heritage, mythology, and storytelling traditions to create globally successful gaming IPs. With the right ecosystem support, India can emerge as a global creative powerhouse in interactive entertainment. We look forward to a progressive, growth-oriented Budget that enables innovation while promoting responsible industry development.”
Anuj Tandon, Partner – India & UAE, BITKRAFT Ventures, says,
“India’s gaming industry is at a defining inflection point, driven by a massive digital-first audience and global demand for content – especially since clarity on regulation by the government. Budget 2026 should recognize gaming as a core pillar of the AVGC-XR ecosystem, not just a consumer industry. My wish list would include tax incentives for global video gaming companies setting up shop in India that will help upgrade our talent pool to be industry ready to build games from India to the world. With the right policy push, India can emerge as a global hub for game development and interactive entertainment exporting our culture effectively.”
Anurag Choudhary, Founder & CEO, Felicity, says,
“India’s gaming opportunity should increasingly be viewed through the lens of production, not just consumption. While the domestic market continues to grow, the larger long-term opportunity lies in building globally competitive games, original IP, and scalable publishing platforms that can reach international audiences. With clearer regulatory frameworks in place, the ecosystem can shift its focus toward strengthening fundamentals like product quality, retention, and sustainable monetisation, rather than short-term market cycles. India has strong engineering, creative, and analytical talent, and when paired with the right infrastructure and publishing systems, it has the potential to emerge as a meaningful global producer of gaming content, not just a large consumer market.”