Boom time for locally developed content in gaming and E-sports in 2025: AIGF

The Indian gaming industry continues to remain robust, with 20% growth seen in revenue in 2024. This upward trajectory is expected to continue in 2025, with mid-core games, and casual & hyper-casual segments projected to surge ahead.

In conversation with Adgully, a spokesperson of the All India Gaming Federation (AIGF) delves into the dynamic Indian gaming and esports landscape in 2025. He explores the key trends, challenges, and opportunities that will shape this industry in 2025, including the rise of Indian-made games, the impact of emerging technologies, and the crucial need for clear and supportive regulations.

The spokesperson also shares insights into AIGF’s role in fostering a responsible and sustainable gaming ecosystem in India and outlines their vision for the industry’s future on the global stage.

Trends, Developments, and Innovations Expected in 2025:

In 2025, the Indian gaming and e-sports industry is expected to see continued growth, with a significant increase in the creation of locally developed content. Indian developers are increasingly infusing games with elements of Indian culture, storytelling, and heritage, which is not only resonating with domestic audiences but also gaining international recognition. This shift is also supported by the rising popularity of indie games, with more creative and innovative titles emerging from Indian studios. Established gaming operators are investing heavily in these local studios, further diversifying the industry and helping push Indian-made games onto the global stage.

Additionally, the industry would benefit from the increasing accessibility provided by improved internet connectivity and the ongoing rollout of 5G, which is expanding the reach of online gaming. Technologies like artificial intelligence and augmented reality will also have a role in enhancing the gaming experience alongside fostering creativity, supporting local talent, and growing India's presence in the global gaming market.

What AIGF Looks Forward to in 2025:

As the gaming industry continues to mature, we anticipate greater collaboration between the gaming ecosystem and policymakers to establish clear, supportive regulations that foster both growth and innovation. This alignment will be crucial for creating a sustainable environment where the sector can thrive. Furthermore, India’s burgeoning gamer base and improving infrastructure position the country to become a key player in the global arena. With a rapidly expanding talent pool, infrastructure advancements, and growing investment, India is on track to take a prominent role in shaping the future of global e-sports.

Headwinds and Tailwinds in 2025:

Headwinds: Regulatory challenges, including tax hikes, ambiguity surrounding intermediary rules, and confusion regarding the classification of online gaming, may continue to hinder growth in the sector. Additionally, external pressures such as competition from international markets and the rising threat of illegal and offshore betting and gambling operations could pose further challenges. Addressing these issues will be crucial to ensuring the sustainable development of the gaming industry in India.

Tailwinds: The gaming sector is poised for further growth, driven by increasing user engagement and the adoption of cutting-edge technologies. Indie game development is gaining significant momentum, with a growing focus on creating homegrown content and expanding local developer studios. This trend will likely accelerate as both domestic and international investment in the sector rises. Additionally, as the industry matures, it is increasingly positioned for a more global impact. These factors combined will create a favourable environment for the gaming sector to thrive in the coming year.

How Gaming and E-sports Industry Performed in 2024:

In 2024, the gaming and e-sports industry in India has continued to thrive, with online gaming emerging as the fourth-largest segment within the broader media and entertainment sector. The country now has over 500 million gamers, with around 90-100 million playing daily, making India the world’s second-largest market for mobile game downloads. The sector has seen increased interest, both in terms of user engagement and career opportunities. The government’s focus on improving the sector’s infrastructure and policies has further fuelled this growth.

However, despite strong growth in the gaming industry, the sector has faced challenges due to regulatory uncertainties and the recent GST hike. Nonetheless, the industry has shown resilience, generating $400 million in incremental revenue, bringing its total net revenue to $2.4 billion in FY24. This accounts for 63% of India’s overall gaming revenue, which totalled $3.8 billion. However, investment in the sector has seen a notable decline compared to last year, primarily due to the ongoing regulatory hurdles.

Key Trends and Developments in 2024:

Key trends include the growth of mobile gaming, a rising number of gamers opting for professional careers in e-sports, and continued development of technologies such as cloud gaming. The Indian market has also seen increasing participation from international companies, helping to drive innovation in the gaming ecosystem. The government’s interest in improving industry standards and creating regulatory clarity has helped to solidify the sector’s foundation.

Major Milestones Achieved by AIGF in 2024:

This year, AIGF has made significant strides in promoting responsible gaming practices by working closely with gaming companies to foster a safer environment. AIGF has also collaborated with government bodies and regulators to address illegal and offshore betting operations, an issue it has been actively engaged with since 2016 and continues to work on. In addition to these efforts, AIGF has been at the forefront of technological advancements within the gaming sector, continually striving to enhance the overall ecosystem and ensure its growth is both safe and sustainable.