“India’s Gaming Sector: A $7.5 Billion Growth Story by FY28”


The Indian’s gaming Sector is on a remarkable growth trajectory, with Lumikai, a gaming and interactive media-focused venture fund, revealing in its latest report that it’s poised to reach a staggering $7.5 billion in revenue by FY28. In this State of India Gaming Report, crafted in collaboration with Google, we’ll dive into the latest insights and trends that have shaped this thriving sector, from revenue milestones to demographic shifts and gaming preferences.

Gaming Revenue Milestones:

In FY23, the Indian gaming industry achieved a significant milestone, generating $3.1 billion in revenue, marking a robust 19% growth compared to the $2.6 billion recorded in FY22. This growth is a testament to the industry’s resilience and adaptability, particularly in the wake of challenging times. It’s worth noting that Lumikai’s earlier projection for FY27 was an impressive $8.6 billion, showcasing the industry’s potential for exponential growth.

India's Gaming Sector

1.Challenges in Real-Money Gaming:

The report also highlights the growth of real-money gaming revenue, which expanded by $500 million in FY23. However, it predicts that this segment may face headwinds and undergo industry consolidation in the coming years. One of the significant challenges affecting real-money gaming companies is the 28% GST (Goods and Services Tax), which has put additional pressure on the sector.

2.Rising Number of Paying Gamers:

In FY23, around 140 million gamers were paying users, representing a substantial portion of the gaming community. India’s total gamer count in FY23 reached a staggering 568 million, accounting for over 50% of all Indian internet users. This figure saw a 12% increase from the previous year, illustrating the growing popularity of gaming in the country.

3.In-App Purchases on the Rise:

The report projects a robust industry growth rate of 20% Compound Annual Growth Rate (CAGR). This growth is primarily fueled by the increasing trend of in-app purchases in casual and mid-core games and the growing revenues from in-game advertising. Gamers are now more willing to invest in their gaming experiences.

4.Changing Demographics and Gaming Habits:

Gaming demographics in India continue to evolve. Approximately 50% of gamers fall within the age bracket of 18-30 years, with a male-to-female ratio of roughly 60:40. A noteworthy trend is the growing number of gamers from non-metro cities, accounting for 66% of gamers in FY23, up from 57% in FY22.

Why People Play:

The report sheds light on the motivations of gamers. Most users play games for leisure and socialization with friends. Of those surveyed, 41% mentioned they’ve transitioned from casual games to exploring various genres, and 28% showed an inclination to experiment with new gaming experiences.

In-App Purchases and Payment Methods:

Over 58% of users make in-app purchases, underlining their commitment to enhancing their gaming experiences. Remarkably, nearly 62% of users prefer to make payments through UPI (Unified Payments Interface), showcasing the digital payment revolution’s influence on the gaming industry.

Positive Outlook:

Salone Sehgal, Founding General Partner at Lumikai, commented on the promising outlook of the Indian gaming industry. She attributed this growth to rapid digitization, an influx of new gamers and paying gamers, and the expanding diversity of gaming content consumed. Despite a slowdown in funding, the industry remains optimistic, with increasing engagement from gamers in non-metro cities presenting a substantial growth opportunity.


The Indian gaming industry’s journey from $3.1 billion in FY23 to a projected $7.5 billion by FY28 is a testament to its dynamism and potential. The sector continues to evolve, drawing in gamers from all corners of the country, driven by digitalization, diverse content, and an ever-increasing passion for gaming. While challenges exist, the industry remains resilient and optimistic, positioning itself for continued growth in the years to come.

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