India's Gaming Boom: A $9.2 Billion Market by 2029

India's gaming market is projected to hit USD 9.2 billion by 2028-29, according to Lumikai's report. The 23% market growth in FY24, boosted by ad revenue and in-app purchases, highlights emerging trends and challenges including taxation issues in real money gaming. India is the second-largest mobile gaming market globally.

India's gaming market is on a trajectory to reach USD 9.2 billion by fiscal year 2028-29, according to a report by venture capital firm Lumikai. The sector saw a 23% growth in FY24, fueled by advertisement revenue and in-app purchases, increasing from USD 3.1 billion in FY23 to USD 3.8 billion.

Driving this expansion is the robust increase in in-app purchase revenue, which grew by 41% year-on-year. Despite this, real money gaming platforms face taxation challenges that have compressed margins and affected profitability.

India, now the world's second-largest mobile gaming market, added 23 million gamers in FY24, reaching 590 million. Time spent on gaming rose by 30%, and over 148 million gamers made in-game payments, indicating a sophisticated and overlapping gamer demographic.

(With inputs from agencies.)