India’s gaming and interactive media market set to triple by FY2030: Report

India’s $9.3 billion Digital Media and Entertainment market is growing faster than ever, supported by a strong consumption economy, rising discretionary spending and over 835 million internet users with a median age of 29 as per the Gaming India Report: India’s Gaming and Interactive Media Market Opportunity by BITKRAFT–Redseer India. Within this space, gaming and interactive media are emerging as the fastest-growing segments, expanding 1.5 times quicker than the overall market.

The two sectors currently contribute $2.4 billion to the market in FY25 and are projected to reach $7.8 billion by FY30P. The momentum is being fuelled by deep smartphone penetration, high daily engagement and increasing innovation across Tier 2 and Tier 3 regions.

Within gaming, the digital segment is entering a decisive phase of maturity. Following regulatory changes that redirected focus from real money gaming to digital titles and esports, the industry is expected to grow at an 18% CAGR from FY25 to FY30P. The digital gaming market is forecast to double to $4.3 billion by FY30P, driven by socialised gameplay, vernacular content and AI-led development.

Hybrid casual and battle royale games are leading user growth and monetisation. In-app purchases are also set to overtake advertising as the primary source of revenue by FY30P. More than 500 gaming-focused startups have launched in the past five years, underscoring the strength of India’s development ecosystem. Esports, too, is rapidly scaling and is expected to rise at a 26% CAGR to $132 million by FY30P, powered by sponsorship-driven revenue streams.

The interactive media market is on an equally aggressive trajectory, expected to grow from $440 million in FY25 to $3.2 billion by FY30P. ‘Content’ platforms are projected to double their market share from 18% to 36% over the same period. Audio streaming is forecast to quadruple from $72 million to $300 million by FY30P, supported by UPI AutoPay and longer listener engagement. Micro dramas, a fast-emerging format, are predicted to reach $1.1 billion by FY30P, driven by demand for short, serialized stories.

‘Connect’ platforms form the backbone of the interactive media ecosystem, accounting for 82% of the market in FY25. India’s social video and discovery platforms, worth $202 million today, are expected to triple by FY30P through virtual gifting and private calls. Astro and devotional tech, rooted in a $40 billion offline market, is projected to expand from $165 million in FY25 to $1.3 billion by FY30P through digital consultations.

AI companions mark the next frontier, with global funding at $400 million and Indian startups localising products for companionship and tutoring. Together, gaming and interactive media are shaping the next phase of India’s digital economy, redefining entertainment, engagement and monetisation for a billion-strong audience.