The Indian gaming industry is on track to hit $4.5 billion by 2025, with employment potential soaring to 250,000 jobs, according to the latest survey by the All India Game Developers Forum (AIGDF). The report highlights $2.78 billion in investments from FY20 to FY24 YTD, emphasizing both the sector’s rapid expansion and the challenges that must be addressed to position India as a global gaming powerhouse.
The global video gaming market, currently valued at $199.74 billion in 2022, is projected to grow to $307.19 billion by 2029, at a 6.3% CAGR. India is emerging as a key player, with its gaming sector expected to triple in value to $3.9 billion by 2025.
The survey highlights a shift beyond metro cities, with Tier-2 cities like Ahmedabad, Kochi, Surat, and Rajkot becoming new hubs for game development due to cost efficiency and growing talent pools. Additionally, developers are increasingly embracing AI, blockchain, and immersive technologies to remain globally competitive.
“India’s game development sector is at a crucial juncture. The survey reflects the strong creative ambition of our studios and their readiness to serve not just India, but the global gaming community. To realize the vision of ‘Make in India for the World’ and emerge as a global gaming powerhouse, we must now invest in building the right ecosystem — with targeted funding, streamlined policies, and dedicated skilling programs to nurture specialized talent. The foundation has been laid, and with the right support, India can deliver globally successful and iconic gaming content,” said Roland Landers, AIGDF Spokesperson.
Despite strong growth, challenges persist:
– Funding Bottleneck: Developers call for venture capital and government-backed funding to help studios scale.
– Regulatory Uncertainty: Clearer policies on IP rights, data protection, and monetization are needed.
– Skill Shortages: There remains a lack of specialized talent, particularly in backend development and game engineering.
While hurdles remain, optimism runs high among developers. The survey underscores the need for policy support, international partnerships, and government initiatives to sustain long-term growth. Industry experts believe that strategic investments and regulatory clarity will propel India’s gaming sector into its next phase of expansion.