October 31, 2025

India’s digital entertainment world is lighting up with excitement as gaming and interactive media stop being just hobbies and turn into big business! The country’s digital media and entertainment market is set at a whopping $9.3 billion for FY25. Among this, gaming and interactive media are zooming ahead like rocket fuel, growing 1.5 times faster than the rest of the industry. This spicy growth is thanks to rapid monetisation, wide UPI adoption, and people happily paying for digital fun. India boasts a massive 835 million internet users and is a cool, young country with the median age at just 29. With 700 million smartphone users and 500 million gamers, it's no surprise that digital games and media are booming. Together, gaming and interactive media make up $2.4 billion of the entertainment market in FY25. But hold tight — this is expected to jump to $7.8 billion by FY30! Thanks to new products and more people from Tier 2 and Tier 3 cities joining the fun, the market is getting spicy and vast. After a government ban on online money gaming, the spotlight has shifted to digital gaming and esports. Digital gaming alone is forecasted to grow at 18% yearly from FY25 to FY30, reaching $4.3 billion. This growth is fueled by social features, local languages, and cool AI-driven game development. In-app purchases will soon earn more than ads by FY30, with more than 500 gaming startups thriving in recent years. Hold your breath — esports is also exploding! Expected to grow 26% yearly to $132 million by FY30, thanks to sponsorships and big support from colleges and tournament organizers. Anuj Tandon, partner at Bitkraft Ventures, says Indian gamer habits have changed fast: “Earlier, people played games but did not spend on them. Spending on games delivers more entertainment value than traditional media.” This is a game-changer! He explained three big growth reasons: “First, more spending on games, especially post-COVID, as playing games gave more hours of fun compared to movies. Second, micro dramas and short videos are growing fast because India uses smartphones first. The micro drama scene is catching fire just like China. Third, astrology and devotional content have strong cultural money power in India, adding to digital spending.” Piyush Kumar, CEO of streaming platform Rooter, predicts an exciting future: "There is clarity on what can scale in India. International developers are making games for India, and Indian studios want to go global. Gaming has become a social network for many, and UPI has made paying easier. Spending per gamer jumped from $2-4 to nearly $25 yearly — and this is just the start!" He added that esports will go mainstream like cricket’s IPL. Anurag Chaudhary of Felicity Games said, “We start by copying what works elsewhere, then improve it and finally innovate. This approach helped markets like China and Vietnam and now Indian studios can build global hits.” Interactive media isn’t far behind — it will jump from $440 million in FY25 to $2.7 billion by FY30. Content platforms, audio streaming (like Pocket FM and Kuku FM), and social platforms are growing fast. Astrology and devotional digital services are expected to explode from $165 million to $1.3 billion. Investor interest is hot, especially in micro dramas and astrology apps at early stages. Larger money is flowing into popular audio platforms. India’s digital entertainment industry has kicked into high gear. With young users, easy digital payments, and creative local and global gaming, the future looks thrilling and packed with fun. Ready to join the game? The party has just begun!

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Tags: India Digital Entertainment, Gaming Industry Growth, Interactive Media, Esports India, Micro Drama, Upi Adoption,