Desi Gamers Rise: The $60-Billion Industry Fueling Small-Town India
By Nauman Mulla
India's gaming industry has witnessed rapid growth, transforming from a casual pastime into a significant source of income for many. According to a report by WinZO and the Interactive Entertainment and Innovation Council, the Indian gaming sector has a market value of approximately 3.7 billion USD in 2024. The figure is projected to grow to 9.1 billion USD by 2029 and a whopping 60 billion USD market size by 2034.
The studies clearly reinforce the trust in the gaming industry, showcasing the industry's bright future. The Indian gaming industry is expanding rapidly, not just in metros but also in tier 2 and tier 3 cities. There have been a number of factors which have played a crucial role in its making.
Increased Accessibility Due to Affordable Technology
One of the primary reasons for online gaming gaining ground in Tier-2 and Tier-3 cities is increased connectivity to the internet. The expansion of 5G technology and fibre infrastructure enabled the quick and easy adoption of online gaming.
Not to forget, the increasing smartphone penetration in these cities played a major role in opening the doors to gaming, which later grew into participation in action and simulation games online.
Rise of Localised Content in Online Games
Relatability has been the heart of any popular content. People fall in love with content and the characters when they relate to them. The same holds true for online games. For years, India had been playing games developed in other countries and shaped by different cultural and regional contexts.
Today, times have changed. Gamers now have access to thousands of regional options, alongside global titles with local language content. International gaming platforms have recognised the trends that gamers prefer content in their native language, stories with Indian narratives and visuals rooted in local culture and folklore. This is a reflection of a larger trend– Indian gamers today see gaming not just as a form of entertainment but also as a medium for self-expression.
Government and Industry Support
In 2022, the Indian government launched the Animation, Visual Effects, Gaming and Comics ( AVGC) Promotion Task Force to boost innovation and skill development in this sector. Further, the establishment of the National Centre of Excellence for Online Gaming in Shillong reflects the government's interest in creating opportunities for skilled youth in Tier 2 and Tier 3 cities. Beyond this, different gaming events hosted by a range of industry leaders, along with regular reports and studies on this gaming sector, contribute to building awareness around online gaming in India.
With the advancement of graphics and integration of Generative AI features, online gaming has become increasingly immersive and a personalised experience. Many Indian gamers have emerged as popular content creators on YouTube and other platforms, successfully monetising their gameplay. There is a huge potential for the creator economy in this sector, with the potential to create 2 million jobs by 2034 (WinZO Report).
However, the gaming industry generates a wide array of career paths beyond gaming or content creation. From game developer and programmer to ancillary roles in cybersecurity and Fintech, there is immense potential in the sector. Many freelancers from Tier 2 cities are contributing to global projects of 3D modelling and AR/ VR development. From OTT Entertainment to EdTech, several platforms are integrating gaming features.
Challenges for Tier-2 and Tier-3 Youth
While there are great opportunities in India's gaming industry and the youth are already exploring many of them, a few challenges may hinder its scale of adoption. Some of the challenges include:
Skill development gaps: Game design is a crucial aspect of the gaming industry that needs to be taken care of for the rapid industry boom.
Hardware and infrastructure deficits: Another issue is limited infrastructure access to high-end hardware in Tier 3 cities, posing a significant challenge to the industry.
Digital awareness or gaming literacy: Lack of gaming literacy among users, specifically in Tier 2, Tier 3 citie,s prevails among younger or older first-time gamers.
These factors tend to hamper technological development and competitive gaming in non-metro areas.
The future for Tier-2 and Tier-3 youth in India's gaming industry looks promising. Dominated by simulation and hyper-casual games, this sector is expected to grow at a CAGR of 10.8% over the next three years (EY FICCI Report 2025). With careful planning and strategic investment by government and private players, we can expect greater innovation and increased participation from diverse regions of the country.
(The author is the Co-Founder and COO of STAN)
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