Future of India’s esports industry: A billion-dollar opportunity
India’s esports and gaming industry is poised for exponential growth, driven by a young, tech-savvy population, increasing smartphone penetration, and government recognition of esports as a legitimate sport. During the India Gaming Show 2025, held from 20-22 February 2025 at the Confederation of Indian Industry (CII) venue in New Delhi, industry leaders and experts shared their insights on the future of India’s gaming ecosystem, highlighting its potential to become a global powerhouse.
The initial panel, featuring Abhishek Binaykia (Partner, Grant Thornton Bharat LLP), Rajan Navani (President, Indian Digital Gaming Society, Chairman & MD, Jetline Group, Chairman of JetSynthesys), Sean (Hyunil) Sohn (CEO of Krafton India), and Rajeev Nagar (Country Manager – India & SAARC), delved into the opportunities, challenges, and strategies needed to unlock India’s gaming potential.
India’s gaming boom: From 80 million to half a billion gamers
Rajan Navani opened the discussion by highlighting the staggering growth of India’s gaming industry. In 2017, India had approximately 80 million video gamers. Today, that number has surged to nearly 500 million, making India one of the fastest-growing gaming markets in the world. This growth is fuelled by affordable smartphones, cheap data plans, and the increasing popularity of mobile gaming.
Navani stressed that while India’s average revenue per user (ARPU) remains low compared to global markets like Japan and South Korea, the sheer scale presents a massive opportunity. “Every time there is a mobility shift in incomes, it’s 100 to 200 million people moving up the value chain with more money to spend,” he said. This upward mobility, coupled with a young demographic, positions India as a key market for domestic and global gaming companies.
Esports: The next frontier
Esports, in particular, has emerged as a significant driver of growth. Abhishek Binaykia noted that the Indian government’s recognition of esports as a multi-sport event has been a game-changer. “Gamers are now treated on par with traditional athletes, with equivalent incentives,” he said. This recognition has not only legitimised esports but also opened doors for investments, sponsorships, and infrastructure development.
Sean Sohn, drawing parallels with China’s gaming evolution, suggested that India could follow a similar trajectory. “Chinese game developers started by creating games based on their culture and historical heritage, which eventually dominated the local market and expanded globally,” he said. India, with its rich cultural diversity, has the potential to create localised content that resonates with both domestic and international audiences.
Infrastructure and talent: Bridging the gaps
Despite the optimism, the panellists acknowledged several challenges that must be addressed. Rajan Navani pointed out the critical gaps in infrastructure and talent. “Video gaming is an industry that brings together engineering, art, design, and animation. We need to scale our manpower to become globally competitive,” he said.
To address this, the Indian government, in collaboration with industry bodies like CII, has launched initiatives such as the National Centre of Excellence for Gaming and the Indian Institute of Creative Technologies. These initiatives aim to foster industry-academia collaboration and equip young talent with the skills needed for the future of gaming.
Navani also highlighted the need for futuristic infrastructure, including esports stadiums and gaming hotels, to create a robust ecosystem. “We are 50 years late to the video gaming industry, but we have the opportunity to leapfrog by investing in technologies like AI, blockchain, and cloud gaming,” he added.
Monetisation and commercial sustainability
While esports has seen phenomenal growth, monetisation remains a challenge. Sean Sohn admitted that profitability in esports is still elusive. “We invest in esports as a passion, but we haven’t reached a level where it’s commercially sustainable,” he said. Sohn stressed the need to educate brands about the value of esports and create an ecosystem that enables sustainable revenue streams.
Abhishek Binaykia echoed this sentiment, stressing the importance of in-app purchases and premium content. “Indians are willing to spend on great games. We need to focus on creating high-quality content that encourages in-app purchases,” he said.
Policy and regulation: Striking the right balance
The discussion also touched on the regulatory landscape. Rajan Navani spoke about the need for self-regulation within the industry to ensure responsible gaming. “We encourage developers and publishers to take care of user interests and create a balanced gaming experience,” he said.
Rajeev Nagar highlighted the government’s proactive approach, citing the formulation of the policy as a significant step forward. “The government’s recognition of gaming as a key industry and its efforts to create a conducive policy environment are encouraging,” he said.
Road ahead
The panellists unanimously agreed that India’s gaming industry is at an inflection point. With the right investments, infrastructure, and policies, India has the potential to become a global gaming hub. Rajan Navani summed it up aptly:
“The only thing that limits us is our imagination. If we can imagine the future of video gaming correctly and build the right talent and infrastructure, we can shape the future of this industry.”
As India continues to embrace gaming and esports, the industry is set to play a pivotal role in the country’s digital economy. With a projected market size of , the future of India’s gaming industry looks brighter than ever.
The panel discussion concluded with a call to action for all stakeholders—industry players, policymakers, and educators—to collaborate and harness the immense potential of India’s gaming and esports ecosystem. The journey has just begun, and the stakes have never been higher.
