India's Gaming and Interactive Media Sector to Triple to $7.8 Billion by 2030, Despite Real Money Gaming Ban

India's burgeoning gaming and interactive media sector is on track for substantial growth, with projections indicating it will triple from an estimated $2.4 billion in Fiscal Year 2025 to $7.8 billion by FY30. This optimistic outlook persists despite significant headwinds from the recent ban on real money gaming (RMG), which has reportedly cost the sector nearly half of its potential market size, estimated to be around $4 billion for the current year.

The report highlights three primary drivers for this projected expansion. Firstly, a significant shift from advertising-based revenue models to in-app purchases (IAP) is anticipated, with IAP expected to grow six-fold and eventually surpass advertising revenue. The average revenue per paying user (ARPPU) is forecast to climb to $27, a considerable increase from the current $2-5.

Secondly, India's user base for mobile gaming has matured since 2016, with consumers increasingly valuing longer entertainment durations for their spending, similar to choosing games over movies. Thirdly, the rise of local interactive media solutions, including micro-dramas, audio streaming, and astro-devotional tech, is contributing to sector growth.

Specific sub-sectors show impressive growth forecasts: digital gaming is expected to grow at an 18% CAGR to $4.3 billion by FY30, while esports is projected at a 26% CAGR to $132 million. The broader interactive media segment, encompassing audio streaming and micro-dramas, is expected to grow from $440 million in FY25 to $3.2 billion by FY30. Micro-dramas alone could reach $1.1 billion, and audio streaming platforms are set to quadruple.

Astro-devotional tech shows perhaps the most dramatic growth potential, projected to expand eight-fold from $165 million to $1.3 billion by FY30, reflecting its deep cultural integration in India.

Impact: Despite the immediate negative impact of the RMG ban, the resulting regulatory clarity has bolstered investor confidence. Venture capital firms like BITKRAFT Ventures are increasing their investment activity in India, recognizing the sector's long-term potential and competitive regulatory environment compared to some Asian markets.

Rating: 8/10

Difficult Terms: Real Money Gaming (RMG): Online games where players wager actual money and can win or lose money based on game outcomes. In-App Purchase (IAP): Payments made within a mobile application or game for virtual goods, features, content, or services. Average Revenue Per Paying User (ARPPU): A metric indicating the average revenue generated from users who have made at least one purchase within a specific period. CAGR (Compound Annual Growth Rate): The mean annual growth rate of an investment over a specified period of time, compounded annually. Micro-drama: Short-form, serialized video content, typically consisting of episodes lasting a few minutes each. Astro-devotional tech: Technology platforms and applications that provide services related to astrology, spiritual guidance, religious practices, and related content.